Costa Rica WT/TPR/S/180/Rev.1 
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III. TRADE POLICIES BY MEASURE 
(1) OVERVIEW  
1. Since the previous review in 2001, Costa Ri ca has taken measures to modernize its trade 
regime, simplifying and computerizing customs pr ocedures, and adopting new regulations on the 
procedures and on customs valuation.  Tariffs are th e principal means of protection at the border and 
all tariffs are ad valorem .  The average tariff protection applied has remained virtually unchanged and 
in 2006 reached a simple average of 6.9 per cent.  The average for agricultural products 
(WTO definition) is 14.2 per cent, whereas for other pr oducts it is 5.6 per cent.  The tariffs show signs 
of escalation. 
2. Bound tariff rates range between zero and 233 pe r cent, with an average of 44.1 per cent.  
Costa Rica has bound 100 per cent of its tariff lines,  giving its trade regime greater predictability, 
although this is somewhat undermined by the wide ga p that exists between applied and bound tariffs. 
3. Costa Rica allows almost all imports from countries belonging to the Central American 
Common Market (CACM) to enter duty free and gi ves tariff preferences to imports from Canada, 
Chile, the Dominican Republic, Mexico and Pana ma, as well as to three Caribbean Common Market 
(CARICOM) countries since the end of 2006. 
4. Costa Rica applies internal tax es at the same rate to both Costa Rican and imported products, 
with some exceptions such as the Institute of Municipal Development a nd Support tax, which is 
10 per cent on imported beer and 3 per cent on local b eer.  The Agrarian Development Institute tax is 
5 per cent on aerated soft drinks made by Cost a Rican companies and 10 per cent on those produced 
in Costa Rica by concessionaires of interna tional companies or imported soft drinks. 
5. During the period under review, Costa Rica made only limited use of trade protection 
measures.  It applied three anti-dumping measures a nd definitive duties were imposed in one case 
only.  Costa Rica notified the initiation of an inve stigation and the application of a provisional 
safeguard measure on imports of rice.  As re gards countervailing measures, it arrived at an 
undertaking on abolishing subsidies granted for certa in products exported to the Costa Rican market. 
6. Costa Rica has actively implemented sanitary and phytosanitary (SPS) measures and technical 
regulations.  Between January  2001 and December 2006, it submitted 30 notifications on 
SPS measures and 66 under the Agreement on Technical Ba rriers to Trade.  The vast majority of the 
technical regulations adopted related to the tec hnical specifications of products, including some 
unprocessed agricultural products.  The review of technical regulations currently under way in 
Costa Rica provides an opportunity to ensure that  these regulations do not serve as unjustified barriers 
to trade. 
7. Costa Rica bans the export of logs of certain sp ecies of woods from natural forests. It imposes 
taxes on exports of coffee and bananas and there is a minimum export price for the latter.  The Central 
Bank requires registration of foreign currency earne d from exports.  The justification for the export 
charges and procedures should be reviewed so as to lessen their impact on the competitiveness of 
Costa Rica's exports. 
8. Costa Rica has several programmes granting tax ex emptions to exporting enterprises.  It has 
informed the WTO that the free zone and inward processing regimes provide export subsidies.  The 
free zone regime is the only one that allows exempt ion from income tax (30 per cent) and is the most 
important export promotion scheme, accounting for just  over half of Costa Rica's exports of goods in 
2005.  The authorities are examining the costs and benef its of the free zone regime in order to prepare 
a draft reform.  This study is a welcome initia tive inasmuch as the various regimes under which WT/TPR/S/180/Rev.1 Trade Policy Review 
Page 24 
 
 
Costa Rica gives tax exemption conditional upon expor t involve incentives that have an impact on the 
division of resources between export activities and the rest of the economy. 
9. Costa Rica also has a number of tax incentiv e schemes or official financing programmes that 
are not linked to export.  Even though there have  been attempts to determine the impact and 
effectiveness of these schemes and in 2005 a draft law on the transparency and rationalization of 
incentives was under consideration, during the period under review there were no major changes.  
These schemes should, therefore, be evaluated together  with the export-linked schemes, particularly in 
view of the fiscal deficit in the public sector (see Chapter I). 
10. There has been no progress as regards privatiza tion and there are no specific plans in this 
regard.  The Costa Rican Petroleum Refining Company ( Refinadora Costarricense de Petróleo S.A. –  
RECOPE) has a monopoly of the import, refining and wholesale distribution of crude oil and its by-
products and has been notified as a State-trading ente rprise.  At the end of 2006, the products subject 
to government price controls on the domestic mark et were rice and those public services deemed 
essential. 
11. Competition policy prohibits any monopolistic prac tice, but does not cover agents providing 
public services under a concession or State monopolies established by law.  Some services, for 
example, insurance, distilling alcohol, supplying fuel, some telecommunications services, and electricity transmission are solely provided by State-owned enterprises.  Excluding these services 
from the scope of competition legislation consid erably undermines the efforts made to boost 
competition in the Costa Rican market  and, because this market is relatively small, tends to lead to 
market concentration.  At the end of 2006, the Le gislative Assembly was discussing draft legislation 
to open up the insurance and telecommunications markets. 
12. Costa Rica has not signed the WTO Plurilatera l Agreement on Government Procurement and 
is not an observer.  There were no substantial ch anges in the legislative framework for government 
procurement in the period 2001-2006, even though measures were taken to promote small and 
medium-sized enterprises and transparency.  Products manufactured by local industry may be given 
priority for government procurement.  Participation by foreign bidders is subject to reciprocity.  The 
authorities have indicated that, in practice, reci procity is not a requirement.  In 2005, for the 
government sector as a whole, the total value of procurement of goods and services was equivalent to 
18.3 per cent of the GDP for that year. 
13. There have been no major amendments to in tellectual property rights legislation and the 
adoption of comprehensive regulations for the Law on Intellectual Property Rights Enforcement 
Procedures is pending.  Costa Rica does not protect new plant varieties, even though a draft law on the subject was under consideration at the end of 2006  as part of the parallel agenda for the Free Trade 
Agreement with the United States. 
(2) M
EASURES AFFECTING IMPORTS  
(i) Customs procedures 
14. The legislative framework for the National Cu stoms Service is laid down in the Uniform 
Central American Customs Code III (CAUCA III)1;  the General Customs Law (Law No. 7557 of 
20 October 1995);  the amendments to the Gene ral Customs Law contained in Law No. 8373 of 
                                                      
1 On 3 November 2003, Costa Rica submitted to the Secretariat of the Central American Integration 
System (SICA) the Second Protocol modifying the Central American Uniform Customs Code (CAUCA III).  
Under this procedure, Costa Rica gave effect  to CAUCA III as of 19 November 2003. Costa Rica WT/TPR/S/180/Rev.1 
 Page 25 
 
 
18 August 2003 and Law No. 8458 of 21 Septembe r 2005;  together with the implementing 
regulations for the General Customs Law and amendments thereto.2  CAUCA III determines the basic 
customs legislation that must be applied in the signatory countries, in accordance with the 
requirements of the Common Market and the Agreem ent on the Central American Tariff and Customs 
Regime.  The Second Protocol modifying the Uniform Central American Customs Code was 
approved by Law No. 8360 of 24 June 2003 and Executive Decree No. 31536 of 24 November 2003 
and the amendments thereto contain the Unifor m Central American Customs Code Regulations 
(RECAUCA). 
15. During the period 2001-2006, Costa Rica introduced the Information Technology for 
Customs Control Scheme ( Tecnología de Información para el Control Aduanero  – TICA), which the 
authorities explain computerizes customs procedures  and enables better control by adopting a new 
approach based on risk methods. 
16. Costa Rica is a member of the World Customs Organization. 
17. The General Customs Law requires regular importers to be registered with the National 
Customs Valuation and Verification Authority ( Órgano Nacional de Valoración y Verificación 
Aduanera  – ONVVA) at the Directorate-General of Cu stoms.  Under Law No. 7557, amended by 
Law No. 8373 of 18 August 2003, the services of custom s agents must be used in all customs regimes 
with a few exceptions.3 
18. Definitive import must be covered by a customs value declaration4 if the value of the goods 
exceeds 1,000 Central American pesos (US$1,000), with  some exceptions.  The declaration of value 
must be transmitted electronically and must contain, inter alia , information regarding the agents 
(importer, transporter, supplier, intermediary);   the goods (origin, description);  the tariff 
classification;  the exchange rate;  the commercial i nvoice;  the customs value;  the place and country 
of shipment;  the number and date of the bill of  lading;  and the customs regime or procedure 
requested. 
19. After the customs declaration has been accepted and the relevant charges paid, the customs 
indicates whether the goods are to be inspected or can be removed.5  Pursuant to the implementing 
regulations for the General Customs Law, custom s declarations are subject to a selective random 
procedure to decide whether there is to be immediat e verification of the goods declared;  if immediate 
verification is decided, the documents may be ch ecked or the goods may be physically inspected.  
Checking of the documents may result in a request for physical inspection of the goods if this is 
considered necessary in order to confirm the informa tion declared.  Where it is decided to carry out a 
                                                      
2 Executive Decrees Nos. 25270-H (4 September 1997);  32747-H (25 October 2005);  32481-H 
(29 June 2005);  32456-H (29 June 2005);  32098-H (23 September 2004);  32006-H (13 May 2004);  31810-H 
(1°May 2004);  31667-H (5 March 2004);  31063-H (4 February 2003);  30817-H (16 September 2002);  30721-H (10 September 2002);  3 0145-H (17 December 2001);  2992 5-H (1°October 2001);  29663-H 
(15 May 2001);  and 29457-H (25 April 2001).
 
3 The services of customs agents are optional under the following regimes or customs procedures:  free 
zones, export, bonded warehouses, ship's stores and outward processing, as well as for the following:  baggage, 
relief consignments, samples of no commercial value, urgent or "courier" dispatches, postal dispatches, duty-
free shops, non-commercial imports, dispatches of a fami ly nature, industrial or commercial dispatches to the 
customer's premises and imports by the Government or its institutions and, in general, consignment of goods 
subject to regimes or procedures th at do not require customs agents. 
4 Article 319, Regulation No. 25270, as amended by Decree No. 28976-H of 2000;  Executive Decree 
No. 31667-H of 2004 and Executive Decree No. 32456-H of 2005. 
5 Article 321 of Regulation No. 25270, as amended by Decree No. 28976-H of 2000;  Executive Decree 
No. 31667-H of 2004. WT/TPR/S/180/Rev.1 Trade Policy Review 
Page 26 
 
 
physical inspection of the goods, it may be indicated whet her this is to be carried out integrally or by 
taking samples. 
20. According to data from the authorities, in 2006, 15.5 per cent of imports were subject to some 
form of documentary or physical inspection, of which 9.8 per cent underwent both physical and 
documentary inspection and 5.7 per cent checking of  the documents.  The goods are singled out on the 
basis of both selective and random criteria. 
21. Law No. 8373 of 18 August 2003 introduced changes to the appeals procedure.  This is 
regulated by Articles 198-204 of the General Cust oms Law and amendments thereto (Law No. 7557 
of 20 October 1995).  Various acts may be contested, including the assessment of the tax to be paid, 
by lodging an application for reconsideration or an  appeal with the National Customs Tribunal within 
three working days following notification of the act.  The interested party may dispense with the 
application for reconsideration and only lodge an  appeal.  In the case of  procedures and claims 
initiated before the aforementioned amendments ente red into force, any interested party that had 
already applied for reconsideration and review by a higher authority may decide not to proceed with 
the review by a higher authority or with both pro cedures (application for reconsideration and review 
by a higher authority) and lodge an appeal requesti ng the customs to transmit the case to the National 
Customs Tribunal.  After an appeal has been lodge d and the application for reconsideration has been 
rejected as a whole or in part, the competent cust oms authority transmits it to the National Customs 
Tribunal. 
22. The Ministry of Finance is responsible for co mbating various types of tax fraud, including 
smuggling, tax evasion and under-invoicing.  There are a number of tax administration measures for 
this purpose, in particular, proposed regulations to improve enforcement.6  Tax evasion by means of 
under-invoicing or smuggling has involved goods su ch as kitchen accessories, domestic electrical 
appliances, electronic apparatus, ce llular telephones, tyres and perfume.7  Other problems have been 
highlighted concerning application of customs valu ation regulations, customs complaints procedures, 
the system's efficiency and the absence of polici es on the comprehensive development of the customs 
service.8 
(ii) Customs valuation 
23. The WTO Customs Valuation Agreement (CVA) has been implemented by Law No. 8013, 
published on 5 September 2000.  The Central American Regulations  on the Customs Valuation of 
Goods have been incorporated through Executiv e Decree No. 32082-COMEX-H of 7 October 2004. 
Pursuant to Article 20.1 of the CVA, Costa Rica h as delayed application of the valuation rules for a 
period of five years. 
24. In 2001, Costa Rica replied9 to the list of questions regarding the implementation and 
administration of the CVA.  In its replies, Costa Rica indicated, inter alia , that Article 252 of Title XII 
of the General Customs Law provides for the reversal  of the order of application of the valuation 
methods established in Articles 5 and 6 of the CVA.  Pursuant to Article 20.2 of the CVA, allowing 
developing countries to delay application of Article  6, Costa Rica delayed its application for three 
                                                      
6 See http://www.hacienda.go.cr/centro/datos/No ticia/El%20Proyecto%20de%20Ley%20de%20 Aduanas-
Canara-30Oct-2002.doc. 
7 Information consulted at:  http://www.hacienda .go.cr/centro/datos/Noticia/Hacienda%20prepara% 
20operativo%20para%20minimizar%20evasi%C3%B3n%20fiscal-La%20prensa%20libre-8Mar-2006.doc. 
8 University of Costa Rica (2003), pages 50 and 52.  Other concerns regarding customs administration 
issues have been published on line (see http://www.agentesaduaneros.com). 
9 WTO document G/VAL/N/2/CRI/1 of 28 September 2001. Costa Rica WT/TPR/S/180/Rev.1 
 Page 27 
 
 
years as of 1 January 2000 (Article 259 of the Gene ral Customs Law).  Article 6 of the CVA has been 
applied in Costa Rica since 1 January 2003. 
25. In 2002, Costa Rica notified10 that, since 5 September 2000, it had applied the Decision of the 
Committee on Customs Valuation on the Treatment of  Interest Charges in the Customs Value of 
Imported Goods pursuant to Article 256 of the Ge neral Customs Law.  Costa Rica does not apply 
paragraph 2 of the Decision on th e Valuation of Carrier Media Be aring Software for Data-Processing 
Equipment.  In addition to the elements mentioned in the first paragraph of Article 8 of the CVA, 
Article 4 of the Central American Regulations on the Customs Valuation of Goods and Article 254 of 
Title XII of the General Customs Law dete rmine the components of the customs value.11 
26. When determining the customs value of importe d goods, Costa Rica follows the provisions of 
the CVA, which state that the customs value of imported goods is the transaction value.12  According 
to the authorities, the transaction value method in the CVA is used to determine the value of some 
95 per cent of imports.  The remainde r are imports subject to some form of revision or adjustment of 
the declared value by the customs authority.  Th e authorities have stated that, when determining 
alternative values, Costa Rica also follows  the provisions laid down in the CVA. 
27. The ONVVA of the Directorate-General of Cust oms is responsible for matters relating to 
customs valuation of goods, as prescribed in the General Customs Law.  The ONVVA defines a series 
of products as being "sensitive", using information available on subsequent verification of customs 
value, market studies on trends in imported g oods and their impact on domestic production and 
industry;  and assessment of the impact on tax re ceipts.  In 2006, domestic electrical appliances, 
ceramic floor tiles, spirits, footwear, perfumery pr eparations, automobiles and plastic products were 
deemed to be sensitive. 
28. Costa Rica requires importers to be registered13 and a compulsory analysis of the value of 
agricultural products that are sensitive as regards the domestic industry, pursuant to Article 245, 
paragraph (g), of the General Customs Law.  Accord ing to the authorities, in practice this provision 
does not constitute a restriction or limitation on th e import of such goods inasmuch as registration of 
these importers is voluntary and is not a prior requireme nt in order to import.  They have also pointed 
out that the analysis referred to in this regulation is part of the subsequent verification of value in 
order to detect deviations from the declared value. 
(iii) Rules of origin 
29. Costa Rica notified the WTO14 that it does not have any non-preferential rules of origin. 
30. Costa Rica applies preferential rules of  origin as a member of the CACM.15  It also applies 
preferential rules of origin under its trade agreem ents with Canada, Chile, the Dominican Republic, 
                                                      
10 WTO document G/VAL/N/3/CRI/1 of 1 February 2002. 
11 These elements include:  (i) transp ort costs up to the port or place of import;  (ii) lo ading, unloading 
and handling charges for transporting the imported goods up to the port or place of import;  (iii) insurance costs.  
For the purposes of transport, loading,  unloading and handling costs, the port  or place of import is defined as the 
first port or place of arrival of the g oods in Central American Customs Territory. 
12 As provided in the addition to the General Customs Law and amendments thereto for a new 
Title XII, entitled customs value of imported goods. 
13 Register of importers (Article 245, General Customs Law). 
14 WTO document G/RO/N/1 of 9 May 1995. 
15 Central American Regulations on the Origin of Goods, adopted by Executive Decree 
No. 33263-COMEX of 7 June 2006 and Executive Decree No. 33461-COMEX of 20 December 2006. WT/TPR/S/180/Rev.1 Trade Policy Review 
Page 28 
 
 
Mexico, CARICOM and Panama (see also Chapter II(5)).16  Costa Rica notified the WTO17 of 
preferential rules of origin under the Free Trade Ag reement with Mexico and the Central American 
Regulations on the Origin of Goods. 
31. Costa Rica applies preferential rules of orig in that vary according to the preferential 
agreement and to the type of goods , but in general they are based on the overall principle of a change 
in the tariff classification, in additio n to other rules in some cases. 
32. Certificates of origin under free trade agreemen ts are in the form of a sworn declaration 
completed and signed by the exporter or producer.  These certificates are not issued or countersigned by any government authority, except in the case of the Free Trade Agreement with CARICOM and 
the Free Trade and Preferential Exchange Agreem ent with Panama, under which the certificate of 
origin must be countersigned by a certifying authority authorized by each country's government.  Costa Rica uses the Uniform Central American Customs Form ( Formulario Único 
Centroamericano  – FAUCA) to certify the Central Ameri can origin of goods coming from CACM 
member countries. 
33. Investigation into the origin of goods is the responsibility of the Inspection Department of the 
National Customs Service.  The customs deal with  immediate controls and complaints relating to 
tariff preferences. 
(iv) Tariffs 
(a) Structure and levels 
34. Costa Rica grants at least most-favoured-nation treatment to all its trade partners. 
35. Costa Rica's tariff has two components:  the import duty ( derecho arancelario sobre las 
importaciones – DAI) and an additional duty of 1 per cent pursuant to Law No. 6946 applicable to all 
imports with a few exceptions.
18 
36. Costa Rica defines its own tariff policy with in the framework and guidelines established at 
the CACM level.  It applies the Central Ameri can Import Tariff, which uses the Central American 
Tariff System ( Sistema Arancelario Centroamericano  – SAC) for the official classification of goods.  
The SAC is based on the Harmonized Commodity D escription and Coding System (HS).  The Fourth 
Amendment to the HS was incorporated in to the SAC on 1 January 2007 by Resolution 
No. 1820-2006 of 9 November 2006 adopted by the Central American Tariff Council. 
37. In 2006, Costa Rica's tariff ha d 8,840 10-digit tariff lines (Table III.1).  All tariffs on imports 
are ad valorem and apply to the c.i.f. value of the goods (Table III.2). 
                                                      
16 Chapter IV, Costa Rica- −Mexico FTA, Law No. 7474 of 20 D ecember 1994;  Regulations for the 
Costa Rica-Panama FTA, Executive Decree No. 17188.MEIC  of 12 September 1986;  Chapter IV.  Central 
America-Dominican Republic FTA, La w No. 7882 of 9 June 1999;  Chapter IV, Costa Rica-Canada FTA, Law 
No. 8300 of 10 September 2002;  Chapter 4 Central America-Chile FTA, Law No. 8055 of 4 January 2001;  
Chapter IV Costa Rica and the Cari bbean Community (CARICOM) FTA, Law No. 8455 of 19 September 2005. 
17 WTO document G/RO/N/20/Rev.1 of 27 July 1998. 
18 These exceptions include:  (i) imports covered by  free trade agreements;  (ii) goods included in the 
WTO Agreement on Information Technology (see (v) below);  (iii) imports under the following conditions:  
(a) the Export Processing Zones Regime (Law No. 6695 of  10 December 1981 and ame ndments thereto);  (b) by 
self-managed, savings and loan  and service cooperatives and by workers'  unions;  (c) by higher public education 
establishments;  and (d) medical and surgical equipment,  medicines and raw material s for their manufacture in 
Costa Rica. Costa Rica WT/TPR/S/180/Rev.1 
 Page 29 
 
 
Table III.1 
Summary of MFN tariff, 2006  
MFNa 
Description  Number 
of lines Average 
(%) Range 
(%) Coefficient 
of variation Average bound 
tariff (%) 
Total 8,840 6.9 0 - 151 1.4 44.1 
HS 01-24 1,455 14.5 1 - 151 1.2 45.5 
HS 25-97 7,385 5.4 0 - 15 1.0 43.8 
By WTO category      
Agricultural products 1,366 14.2 1 - 151 1.3 44.9 
Animals and animal products 169 30.7 1 - 151 1.3 70.1 
Dairy products 37 51.4 1 - 66 0.5 85.3 
Coffee and tea, cocoa, sugar, etc. 246 12.1 1 - 66 0.8 43.6 
Cut flowers and plants 80 5.5 1 - 15 1.1 33.3 
Fruit, vegetables and garden produce 319 14.2 1 - 46 0.5 43.7 
Cereals 31 11.7 1 - 36 1.2 32.8 
Oilseeds, fats and oils and their products 120 7.2 1 - 31 0.9 26.2 
Alcoholic beverages and liquids 143 14.2 1 - 15 0.2 46.7 
Tobacco 21 10.5 1 - 41 1.1 42.9 
Other agricultural products n.e.s. 200 4.7 1 - 15 1.0 36.4 
Non-agricultural products (including petroleum) 7,474 5.6 0 - 15 1.0 43.9 
Non-agricultural products (excluding petroleum) 7,434 5.6 0 - 15 1.0 44.0 
Fish and fish products 200 10.2 1 - 15 0.5 46.3 
Minerals, precious stones and metals 449 5.9 0 - 15 1.0 43.6 
Metals 861 4.1 1 - 15 1.1 42.8 
Chemicals and photographic products 1,717 3.1 0 - 15 1.3 43.3 
Leather, rubber, footwear, and travel articles 262 8.1 1 - 15 0.6 44.0 
Wood, wood pulp, paper and furniture 524 7.3 1 - 15 0.7 44.3 
Textiles and clothing 1,103 10.2 1 - 15 0.4 45.2 
Transport equipment 459 6.1 1 - 15 1.0 67.2 
Non-electrical machinery 766 2.6 0 - 15 1.6 39.5 
Electrical machinery 467 3.2 0 - 15 1.6 34.6 
Non-agricultural products n.e.s. 626 7.1 0 - 15 0.9 40.0 
Petroleum 40 5.3 0 - 15 1.1 37.1 
By ISIC sectorb      
Agriculture and fishing 540 9.2 1 - 66 0.9 37.8 
Mining 129 3.2 0 - 15 1.1 45.0 
Manufacturing 8,169 6.8 0 - 151 1.4 44.5 
By HS chapter      
01 Live animals and animal products 356 20.1 1 - 151 1.4 56.8 
02 Plant products 534 10.3 1 - 46 0.8 36.7 
03 Fats and oils 78 9.7 1 - 31 0.7 40.8 
04 Food preparations, etc. 487 15.9 1 - 151 1.0 47.6 
05 Mineral products 224 3.7 0 - 15 1.2 43.6 
06  Products of the chemical and related industries 1,511 2.5 0 - 15 1.5 43.9 
07  Plastics and rubber 447 6.1 1 - 15 0.8 41.7 
08  Hides and skins 131 9.1 1 - 15 0.6 36.9 
09  Wood and articles of wood 134 8.9 1 - 15 0.5 38.5 
10  Wood pulp, paper, etc. 353 6.2 1 - 15 0.8 47.1 
11  Textiles and textile articles 1,059 10.1 1 - 15 0.5 45.0 
12  Footwear, hats and other headgear 92 12.2 1 - 15 0.4 51.6 
13  Articles of stone 216 7.4 0 - 15 0.8 42.4 
14  Precious stones, etc. 58 8.0 1 - 15 0.7 44.6 
15  Base metals and articles of base metal 850 4.4 1 - 15 1.1 42.7 
16  Machinery and mechanical appliances 1,285 3.0 0 - 15 1.6 37.3 
17  Transport material 477 6.1 1 - 15 1.0 66.4 
18  Precision instruments 297 3.8 0 - 15 1.3 37.7 
19  Arms and ammunition 28 13.1 6 - 15 0.3 45.0 
20  Miscellaneous manufactured articles 212 11.4 1 - 15 0.4 42.7 
21  Works of art, etc. 11 8.2 6 - 10 0.3 45.0 
Table III.1 (cont'd) WT/TPR/S/180/Rev.1 Trade Policy Review 
Page 30 
 
 
MFNa 
Description  Number 
of lines Average 
(%) Range 
(%) Coefficient 
of variation Average bound 
tariff (%) 
By stage of processing      
First stage of processing 1,017 7.6 0 - 66 1.0 40.2 
Semi-processed products 2,782 4.4 0 - 46 1.1 43.4 
Fully processed products 5,041 8.2 0 - 151 1.4 45.3 
a Includes the 1 per cent tax applied pursuant to Law No. 6946. 
b ISIC (Rev.2), excluding electricity (1 line).  
Source : WTO Secretariat estimates, based on data provided by the authorities. 
Table III.2 
MFN tariff structure, 2006 
  2006 
1 Total number of tariff lines 8,840 
2 Non- ad valorem  tariffs (% of all tariff lines) 0.0 
3 Non- ad valorem  tariffs without AVEs (% of all tariff lines) 0.0 
4 Tariff quotas (% of all tariff lines) 1.0 
5 Duty-free tariff lines (% of all tariff lines) 2.7 
6 Average of lines exceeding zero (%) 7.1 
7 Domestic tariff peaks (% of all tariff lines)a 1.4 
8 International tariff peaks (% of all tariff lines)b 1.4 
9 Bound tariff lines (% of all tariff lines)  100.0 
a Domestic tariff peaks are defined as rates exceeding thr ee times the overall simple average of applied rates. 
b International tariff peaks are de fined as rates above 15 per cent. 
Source : WTO Secretariat estimates, based on data provided by the authorities.  
38. The average tariff on agricultural products (defined according to Annex I to the 
WTO Agreement on Agriculture) is clearly higher than that on other products.  In 2006, the average was 14.2 per cent for agricultural products and 5.6 per cent for other products.  The following are among the agricultural products that receive a higher le vel of protection:  meat of swine and some of 
its by-products (HS 0203 and 0210);  meat and ed ible offal of poultry (HS 0207);  dairy produce 
(HS 04);  onions and shallots (HS 0703);  beans (HS 0713);  potatoes (HS 0701, 0710, 2004 and 
2005);  rice (HS 1006);  sausages and similar produc ts of meat (HS 1601 and 1602);  and sugar 
(HS 1701) and molasses (HS 1703). 
39. Costa Rica's average tariff remains virtually unchanged, a simple average of 6.9 per cent in 
2006 (7.0 per cent in 2000).  The vast majority of tariff headings are to be found in the 0 to 15 per 
cent range and about half of them are 0 or 1 per cent.
19  In 2006, 46.2 per cent of the tariffs applied 
were in the 0 to 5 per cent range, 27.2 per cent be tween 5 and 10 per cent and 22.5 per cent between 
10 and 15 per cent. 
40. Partly as a reflection of the guidelines laid down at the CACM level, the applied tariff shows 
clear tariff escalation. 
(b) Bindings 
41. Costa Rica's tariff bindings appear in Sche dule of Commitments LXXXV attached to the 
1994 General Agreement on Tariffs and Trade.  Th is Schedule follows the structure of the 1992 
Harmonized System (HS).  Transposition of Schedule LXXXV from the HS92 to the HS96 was 
                                                      
19 In most cases, these lines are subj ect to a zero tariff (DAI), but pay the 1 per cent tax established in 
Law No. 6946. Costa Rica WT/TPR/S/180/Rev.1 
 Page 31 
 
 
certified by the WTO Members in 2001.20  In order to transpose the Schedule of Commitments from 
the HS96 to the HS02, Costa Rica submitted a list of the tariff headings affected by the HS02 
changes.21  The WTO General Council gave Costa Rica a waiver22 until 31 December 2006 to enable 
it to implement domestically the recommended amendments to the Harmonized System nomenclature 
pending incorporation of such cha nges into its schedule of concessions. 
42. Costa Rica has bound 100 per cent of its tariffs.  The bound tariff rates range from 0 to 
233 per cent.  The final average bound tariffs were:  44.1 per cent for all products, 44.9 per cent for 
agricultural products and 43.9 per cent fo r non-agricultural products (Table III.1). 
43. Among the tariff headings strictly comparable to the HS02 contained in the schedule of 
concessions, the WTO Secretariat identified one tariff item (HS 0405200090, other dairy spreads) 
whose applied rate of 66 per cent is higher than th e bound rate of 45 per cent.  The authorities have 
indicated that a mistake was made when preparing the notification of the Second Amendment (HS96) 
and that the line in question came from the entry 04050090, whose final binding was 94.7 per cent. 
(c) Preferential tariffs 
44. Table III.3 provides information on the tariff concessions given by Costa Rica under the 
FTAs in force at the end of 2006 (see also Chapter II). 
Table III.3 
Tariff reduction programmes in FTAs signed by Costa Rica 
Special 
features of reduction CACM Mexico Chile Dominican 
Republic Canada CARICOMa 
Date of entry 
into force July 1963 January 1995 February 2002 Ma rch 2002 November 2002 November 2005 
Distribution 
of tariff items according to Costa Rica's reduction programme
b, c 99.8% free trade; 0.1% excluded; 0.1% subject to import control 73.1% free 
trade; 11.8% 5 years; 12.5% 10 years; 0.4% 15 years; 1.8% excluded; 0.4% 3 other periods 73.4% free 
trade; 9% 5 years; 12.8% 12 years;0.9% 16 years; 3.8% excluded;0.1% bovine meat 91.2% free trade; 
0.7% 5 years; 7.8% excluded; 0.1% quota; 0% oils treatment (Chap. 15) 65.1% free 
trade; 18.7% 8 years; 0.03% 9 years; 14.6% 15 years; 0.4% quota; 1.1% excluded 90.3% free trade; 
1.1% 4 years; 0.8% seasonal treatment; 2.2% treatment by country; 4.6% excluded; 1% pending 
 
Examples of products excluded from the reduction timetable by Costa Rica Coffee, 
whether or not roasted;  raw and refined sugar Dairy produce;  
poultry sector;  potatoes;  onions;  coffee;  sugar;  cocoa powder;  aerated beverages;  tobacco Poultry sector;  
dairy produce;  onions;  potatoes;  beans;  wheat;  vegetable oils;  and the forestry sector (timber and furniture) Meat of chickens or 
hens;  liquid and powdered milk;  coffee;  onions;  beans;  rice;  sugar;  alcohol;  beer;  tobacco;  petroleum by-products;  textile and clothing products Dairy produce;  
meat;  fresh potatoes;  onions;  tomatoes;  carrots;  sweet peppers;  broccoli;  beans;  rice Meat; fish;  dairy 
produce;  rice; coffee;  sugar;  beer; cigarettes;  glass containers;  paints and varnishes;  cement 
a In early 2007, only in force between Costa Rica and Trinidad and Tobago,  Barbados and Guyana. 
b The calculations come from the original nego tiated schedules, except in the case of the CACM. 
c In some instances, the percentages exceed  100 per cent because some lines are subject to two different types of treatment. 
d Vegetable oils and soaps, awaiting negotiation. 
Source : Prepared by the WTO Secretariat on the basis of in formation in the schedules in the FTAs and from the 
Costa Rican Ministry of Foreign Trade. 
45. As a member of the CACM, Costa Rica applies a zero tariff to almost all products originating 
in the CACM.  In Costa Rica's case, the products excluded from free trade are coffee, whether or not 
                                                      
20 WTO document WT/Let/397 of 15 June 2001.  See also WTO documents WT/Let/196 of 
12 November 1998 and WT/Let/462 of 29 March 2004. 
21 WTO document G/SECRET/HS02/CRI/1 of 3 May 2004. 
22 WTO document WT/L/638 of 6 December 2005. WT/TPR/S/180/Rev.1 Trade Policy Review 
Page 32 
 
 
roasted, raw or refined cane sugar and ethyl alcohol, th e latter product only in the case of El Salvador.  
Restricted products are subject to payment of import duties (coffee, whether or not roasted) or an import permit (sugar, ethyl alcohol).  In the case of products subject to im port permits, the countries 
may grant import permits at their discretion, in  which case the products enter under the free-trade 
regime;  if no permit is granted, the pr oducts are subject to the MFN tariff. 
46. Under the Costa Rica-Canada FTA, Costa Rica allows duty-free entry for around 65 per cent 
of Canadian products following the entry into force of the FTA, with the remaining 34 per cent subject to a reduction timetable over eight to 15 years.  Costa Rica excluded 1.9 per cent of goods 
from the reduction process, including meat, dairy produce, fresh potatoes, onions, tomatoes, carrots, 
sweet peppers, broccoli, beans and rice. 
47. Under the Costa Rica-Chile FTA, Costa Rica's tariff reduction involves four reduction phases 
with periods of zero, five and 12 years (for food in dustry, plastic, engineering and other products), 
and 16 years for some products (pig meat, root cr ops, avocados, beer, salt, and paper and printing 
products).  Costa Rica excluded the poultry sector, dairy produce, onions, potatoes, beans, wheat, 
vegetable oils and the forestry sector (tim ber and furniture) from the reduction programme. 
48. Under the Costa Rica-Mexico FTA, Costa Rica pr ovided for an immediate reduction of tariffs 
on 73 per cent of products.  A reduction timetable over five years was agreed for 12 per cent of 
products;  13 per cent had a timetable over 10 years;   0.4 per cent over 15 years;  and 1.9 per cent of 
products were excluded from the re duction programme.  The latter include dairy produce, the poultry 
sector, potatoes, onions, coffee, sugar, cocoa powder,  aerated beverages and tobacco.  In 2006, 97 per 
cent of Mexico's exports to Costa Rica entered duty free. 
49. The FTA between Costa Rica and the Domini can Republic allows free trade in both 
directions for the majority of products.  The excepti ons include some products that were contained in 
a reduction timetable for the period 1999-2004, vegeta ble oils of Chapter 15 of the HS, for which 
differential treatment was agreed, and products  excluded from the reduction programme.  The 
products excluded from the liberalization commitments include sugar, petroleum by-products, coffee, 
whether or not roasted, wheat flour, ethyl alcohol, rice, chicken, powdered milk, onions, garlic, beans, 
tobacco and cigarettes. 
50. Reciprocal preferences are granted under the FTA  between Costa Rica and the five countries 
deemed to have the most developed economies in the CARICOM (Suriname, Barbados, Guyana, 
Jamaica and Trinidad and Tobago).
23  Over a period of four years as of the entry into force of the 
Agreement, 94.5 per cent of the products imported by Costa Rica will enter duty free.  Some 
agricultural products will receive seasonal access tr eatment.  Costa Rica has excluded from tariff 
reduction products such as rice, sugar, beer, chicken,  pig meat (except for hams and shoulders), liquid 
and powdered milk, pain ts and varnishes. 
51. Costa Rica has a Free Trade and Preferential Exchange Agreement with Panama under which 
it grants tariff preferences to less than 25 per cent of the products listed in the HS. 
(d) Tariff concessions 
52. The General Customs Law No. 7557 provides for the following customs regimes that allow 
tariff concessions:  free zones (see  section (3)(iv) below), re-impor t in the same state, re-export, 
                                                      
23 At present, the Agreement is in force between Costa Rica, Tr inidad and Tobago, Guyana and 
Barbados. Costa Rica WT/TPR/S/180/Rev.1 
 Page 33 
 
 
inward processing, temporary export for outward processing, drawback, and temporary import and 
export.  The distinctive features of these special  customs regimes are described in Table III.4. 
Table III.4 
Tariff concessions granted under special customs regimes, 2006 
Regime Features Period  Legal basis 
Free zone Exemption from all taxes on imports of raw materials, 
spare parts, packing materials and other products, 
machinery, equipment, replacement parts, fuel and oil  Article 1 of Law No. 7210 
Re-import in the 
same state The re-import regime allows Costa Rican or cleared 
goods that have been definitively exported and return in 
the same state to enter the customs territory free of duty 
and taxes Within three years as of 
the date of acceptance of 
the declaration of 
definitive export Articles 177, 178, Law 
No. 7557 
Article 1, Law No. 8373 of 
18 August 2003 
Re-export The re-export regime allows foreign goods that have 
entered Costa Rica but not b een imported definitively to 
leave the customs territory.  Goods that have been abandoned or regarding which there are justified 
grounds for assuming that a criminal customs offence 
has been committed may not be re-exported   
Inward processing Allows goods to ente r Costa Rican customs territory for 
the purpose of processing, with suspension of all taxes 
and subject to security being provided.  These goods 
must be re-exported within the time-limits laid down in the regulations after having undergone processing, 
repair, reconstruction, moun ting, assembly, or after 
being incorporated in syst ems, machinery, transport 
equipment in general or app liances with a higher degree 
of technological or functional complexity or after being 
used for other similar purposes, under the conditions laid down in the regulations and the relevant provisions 
issued by the customs administrative authority  Articles 179, 187, Law 
No. 7557 
Article 1, Law No. 8373 of 
18 August 2003 
Temporary export 
for outward 
processing The temporary export for outward processing regime 
allows the temporary export of goods that move freely 
in Costa Rican customs territory for the purpose of 
processing, working or repair abroad and subsequent 
re-import   
Drawback Allows the amounts actually paid or deposited as duty 
with the tax authorities to be  refunded as a result of the 
definitive import of inputs, packaging or wrapping 
incorporated into products for export, provided that they are exported within 12 months as of the date of import of these goods.  The regulations  define the criteria to be 
met by interested parties in or der to be eligible for this 
regime, as well as the time-limits for the authorities to refund the taxes actually paid 12 months as of the date 
of import Article 190, Law No. 7557
Article 1, Law No. 8373 of 
18 August 2003 
Duty-free shops Goods imported under this procedure are not subject to 
taxes.  They must be in authorized shops or premises  Article 134, Law No. 7557 
Samples of no 
commercial value Samples of no commercial value are not subject to 
payment of import duty  Article 120, Law No. 7557 
Temporary import 
and export regime Temporary import is a customs regime that allows 
goods to enter customs territory with suspension of 
import duty.  The goods must be re-exported or 
imported definitively without any alteration or processing, within the period laid down in the regulations and in accordance with the purpose of the 
import.  This time-limit may not exceed one year except 
in the case of temporary import of aircraft, which may not exceed five years  Five years Article 165, Law No. 7557
Article 4, Law No. 8419 
of 28 June 2004 
Source : Prepared by the WTO Secretariat on the basis of Title  VII of Law No. 7557 and information provided by the 
authorities. WT/TPR/S/180/Rev.1 Trade Policy Review 
Page 34 
 
 
(e) Tariff quotas 
53. Costa Rica is entitled to impose tariff quot as under the commitments on minimum access 
opportunities contained in the WTO Agreement on Agricu lture (Chapter IV(2)).  It submitted its latest 
notification on tariff quotas24 in 2001. 
54. According to the authorities, Costa Rica also  imposes tariff quotas on products covered by the 
preferential agreements signed with Mexico (avocad os);  Chile (bovine meat, natural honey);  Canada 
(pig meat, liquid milk, natural honey, pre-fried potato es, sugar, wheat flour, vegetable oils);  and the 
Dominican Republic (chicken breasts, powdered milk). 
(v) Other charges affecting imports 
55. A consular fee is applied under Decree No. 23118-RE of 14 March 1994 and amendments 
thereto (Decrees Nos. 26790 and 29988), which establis h the taxes to be paid for import-related 
documentary consular services where special legisl ation provides that the documentation must meet 
this requirement.  In practice, according to the authorities, this never occurs because the customs 
legislation does not require documentati on to go through the consular process. 
(a) Internal taxes 
56. The following internal taxes apply both to Co sta Rican and imported products:  (i) general 
sales tax ( Impuesto General sobre las Ventas  – IGV);  (ii) the selective consumption tax ( Impuesto 
Selectivo de Consumo  – ISC);  (iii) the special tax on alcoho lic and non-alcoholic  beverages, toilet 
soap and hydrocarbons;  (iv) the Institute  for Municipal Promotion and Support ( Instituto de Fomento 
y Asesoría Municipal  – IFAM) tax;  (v) the Agrarian Development Institute ( Instituto del Desarrollo 
Agrario  – IDA) tax;  and (vi) the general forestry tax (on timber) imposed on the value of logs and 
sawn wood. 
57. The IGV is regulated by Law No. 6826 of 1982 and implemented by Executive Decree 
No. 14082-H of 1982 and amendments thereto.  The gene ral rate of the tax is 13 per cent.  A rate of 
5 per cent applies to monthly consumption of electri city for residential use.  For sales of goods, the 
tax is determined on the basis of the net selling pri ce, which includes the amount of the ISC as well as 
any special consumption taxes applicable.  For th e supply of services, the tax is determined on the 
basis of the selling price after deduction of any discounts.  When goods are imported, the IGV is 
calculated by adding the import duty paid to the c.i.f. value, plus any other import charges and the relevant internal taxes. 
58. In 2006, exemptions from payment of the IGV included sales of products in the basic food 
basket;  retreads and tyres for agricultural machin ery;  veterinary products and agricultural inputs
25;  
medicines;  kerosene;  diesel fuel for fishing excl uding sport fishing;  books;  musical compositions;  
paintings created in Costa Rica; and coffins.  Expor ts and re-import of Cost a Rican goods within three 
years following their export are also exempt from payment of the IGV. 
59. The ISC applies to beer, wine and other ferm ented beverages;  mixtures of fermented 
beverages;  undenatured ethyl alcohol of an alcoho lic strength by volume of less than 80 per cent;  
spirits, liqueurs and other spirituous beverages;  cigars and cigarettes and other tobacco;  domestic 
electrical appliances;  vehicles;  mastics and paints;  cosmetics and hair preparations.  The ISC is imposed on production and the national packaging process.  For imported goods, it is calculated by 
                                                     
 
24 WTO document G/AG/N/CRI/1/Rev.1 of 26 February 2001. 
25 As defined by the Ministry of Agriculture and Livestock and the Ministry of Finance. Costa Rica WT/TPR/S/180/Rev.1 
 Page 35 
 
 
adding import duties to the customs value.  Since the previous review, changes to the regulatory 
framework for this tax include Laws Nos. 8114 of  4 July 2001, 8343 of 18 December 2002 and 8399 
of 19 December 2003;  as well as Decree No. 31605-H of 12 January 2004. 
60. Exemptions from payment of the ISC include e xport contracts and temporary import regimes;  
products in the basic basket;  school uniforms;  certain inputs for agriculture, fishing, the 
pharmaceutical industry, medicines and medical equipment. 
61. The special tax on alcoholic beverages, introduced by Law No. 7972 of 24 December 1999, is 
a special tax amounting to C16.0 per unit of consumption of alcoholic beverages26 imposed on 
domestic production and import of such products. 
62. The IFAM tax is intended to finance the Institu te's activities (Law No. 6283).  It is imposed 
on the c.i.f. value plus:  the tariff, the ISC, the 1 per cent tax imposed by Law No. 6946 and the IDA tax (see below).  In 2006, the IFAM tax was imposed at the following rates:  10 per cent on 
liqueurs, distilled beverages and other spirituous beverages, 10 per cent on imported beer and 3 per 
cent on local beer. 
63. The IDA tax is intended to finance the Institute 's activities (Law No. 6735 of 29 March 1982).  
It is imposed on the c.i.f. value plus:  the import tariff, the ISC and the 1 per cent tax imposed by 
Law No. 6946.  In 2006, the IDA tax was imposed at the following rates:  2.5 per cent on cigarettes;  
8 per cent on liqueurs, distilled beverages and spirituou s beverages;  5 per cent on beer;  and 5, 10 or 
14 per cent on non-alcoholic beverages.  A 5 per cen t rate applies to aerated soft drinks made by 
Costa Rican companies, 10 per cent on soft drin ks produced in Costa Rica by concessionaires of 
international makers or imported soft drinks, and 14 per cent on Costa Rican or foreign carbonated 
beverages, mainly used in mixtures of liqueurs. 
64. There is also a tax on the transfer of second-hand vehicles listed in the National Register, 
which is 2.5 per cent of the value determined by the Directorate-General of Taxation.  There is also a 
tax on the transfer of vehicles imported duty free, which is 30 per cent of the customs value determined in the customs declaration, using the exch ange rate at the time of transfer.  These taxes 
were introduced by Articles 10 and 13 of Law No. 7088 of 30 November 1987 and amendments 
thereto. 
65. Law No. 8114 introduced a single tax on fuel
27 to replace the tariff duty, the IGV, the ISC and 
the 1 per cent tax under Law No. 6946. 
(vi) Import licensing, restrictions and prohibitions 
66. In 2001, Costa Rica replied to the questionnaire on import licensing procedures.28  I n  i t s  
notification, it stated that it applied an import quota allocation scheme.  It also indicated that, as one of 
Costa Rica's GATT accession commitments, import li censing had been abolished by Law No. 7473 of 
20 December 1994.  Article 1 of this Law specificall y abolished the existing licences and, in general, 
                                                      
26 The following volumes are defined as units of consumption depending on the type of beverage:  
(a) beers and "coolers":  350 ml;  (b) wine, sparkling wi ne and cider:  125 ml;  (c) creams, vermouth, sherry, 
port, punch and "rompope" punch:  75 ml;  (d) other alcoholic beverages:  31.25 ml. 
27 The tax applies per litre of fuel at the following rates:   regular petrol C 80;  premium petrol C 83.25;  
diesel fuel C 47;  asphalt C 16;  asphaltic emulsion C 12;  bunker fuel C 8;  LPG C 16;  A1 jet fuel C 48;  
Av gas C 80;  kerosene C 23;  heavy diesel fuel (gas oil) C 15;  heavy naphtha C 11;  light naphtha 11. 
28 WTO document G/LIC/N/3/CRI/3/Rev.1 of 27 February 2001 (in Spanish only). WT/TPR/S/180/Rev.1 Trade Policy Review 
Page 36 
 
 
eliminated any other procedure such as permits, pr ior authorization and approval for the import of 
goods with the exception of special require ments in certain areas (see Table III.5). 
Table III.5 
Import requirements for certain goods 
Requirement Authorizing entity  HS chapters 
affected Justification  Legal provisions 
Verification, 
phytosanitary approval at the point of entry/exit for 
customs clearance, 
export, national/ international transit Ministry of 
Agriculture and Livestock (MAG), Quarantine and 
Plant Register 06-15, 17-19, 
23, 24, 29, 30, 32, 37, 38, 40, 44, 
46, 47, 52, 
53, 63, 64, 70, 85, 90, 96 Phytosanitary 
measure Executive Decree No. 32994 of 4 April 2006 
Executive Decree No. 24973-MEIC-MAG, "Procedures for the application of phytosanitary requirements for the import of plants, plant 
products and others capable of carrying diseases", 
of 16 May 2001 Phytosanitary Protection Law No. 7664 of 
2 May 1997 
Submission of a form 
and other documents on refrigerant gases, 
Government Ozone 
Commission Ministry of the 
Environment and Energy, 
Government Ozone 
Commission 29, 30, 38, 
39, 84 Environmental 
protection Law No. 7223, Approval of the Montreal Protocol 
on Substances that Deplete the Ozone Layer, of 8 May 1991 
Law No. 7228, Convention on the Protection of the 
Ozone Layer, of 29 May 1991 Law No. 7808, Amendment to Approval of the 
Montreal Protocol, of 21 July 1998, Supplement 
No. 41 
Verification and phytosanitary 
approval by the 
Animal Health Directorate at the 
point of entry and 
exit, for customs clearance, export, 
national or 
international transit MAG, Animal 
Quarantine 
Department 01-05, 10, 
15-17, 19, 21, 
23, 28, 29, 
31, 32, 35, 38, 41, 43, 
50, 51, 56, 
57, 67, 96 Sanitary 
measure General Law on the National Animal Health 
Service ( Servicio Nacional de Salud Animal – 
SENASA), Law No. 8495 of 16 May 2006 
Executive Decree No. 28861-MAG, Regulations on the registration and control of veterinary medicines, 
of 23 August 2000 
Executive Decree No. 29762-MAG, on amendment of the Regulations on the registration and control of 
veterinary medicines,  of 10 September 2001 
Executive Decree No. 29830-MAG, on amendment of the Regulations on the registration and control of 
veterinary medicine s, of 10 October 2001 
Executive Decree No. 16899-MAG, Regulations on the preparation and sale of animal feed and its 
implementing regulations, of 10 April 1986 
Law No. 6883, Control of the preparation and sale of animal feed, of 25 August 1983 
Convention on International Trade in Endangered 
Species of Wild Fauna and Flora, Law No. 5605 of 30 October 1974 
Authorization for customs clearance of 
dogs and cats MAG, Animal 
Quarantine 
Department 01 Sanitary 
measure Executive Decree No. 31626, on Regulations on 
the reproduction and responsible ownership of pets, published on 6 February 2004 
General Health Law, Law No. 5395, published in 
the Official Journal ( La Gaceta ) No. 222 of 
24 November 1973 Organic Law on the Ministry of Health, of 
8 November 1973 
Executive Decree No. 6, Regulations on the import and export of dogs and cats, 26 June 1967 
General Law on the National Animal Health 
Service, Law No. 8494, published in Official Journal No. 93 of 16 May 2006 
Regulations on the protection of animal health 
No. 14584-A 
Verification and 
phytosanitary 
approval at the point of entry and exit, for 
customs clearance, 
export, national or international transit 
 MAG, Quarantine 
and Plant Register 06-15, 17-19, 
23, 24, 29, 
30, 32, 37, 38, 40, 44, 
46, 47, 52, 
53, 63, 64, 70, 85, 90, 96 Phytosanitary 
measure Executive Decree No. 32994, Regulations 
governing the organizational structure of the 
phytosanitary service, of 4 April 2006 Executive Decree No. 24973-MEIC-MAG, on the 
Technical Regulation:  "Procedures for the 
application of phytosanitary requirements for the import of plants, plant products and others capable 
of carrying diseases", 16 May 2001 
Law on Phytosanitary Protection, No. 7664, published in Official Journal No. 83 of 2 May 1997 
Table III.5 (cont'd) Costa Rica WT/TPR/S/180/Rev.1 
 Page 37 
 
 
Requirement Authorizing entity  HS chapters 
affected Justification  Legal provisions 
Export and import 
permits for species of 
wild fauna and flora Ministry of the 
Environment and 
Energy, National Conservation Areas 
Scheme 01, 03-06 Protection of 
wild species 
Sanitary and phytosanitary 
measures Convention on International Trade in Endangered 
Species of Wild Fauna and Flora, Law No. 5605, of 
30 October 1974 Law on Wildlife Conservation No. 7317 of 
7 December 1992 
Executive Decree No. 32633, implementing regulations for the Law on Wildlife Conservation, 
of 20 September 2005 
Verification and phytosanitary 
approval by the Animal Health 
Directorate at the 
point of entry and exit, for customs 
clearance, export, 
national or international transit MAG, Animal 
Quarantine 
Department 01-05, 10, 
15-17, 19, 21, 
23, 28, 29, 31, 32, 35, 
38, 41, 43, 
50, 51, 56, 57, 67, 96 Sanitary 
measure General Law on the National Animal Health 
Service, Law No. 8494 of 16 May 2006 
Executive Decree No. 28861-MAG, Regulations on the registration and control of veterinary medicines, 
of 23 August 2000 
Executive Decree No. 29762-MAG, on amendment of the Regulations on the registration and control of 
veterinary medicines,  of 10 September 2001 
Executive Decree No. 29830-MAG, on amendment of the Regulations on the registration and control of 
veterinary medicine s, of 10 October 2001 
Executive Decree No. 16899-MAG, Regulations on the preparation and sale of animal feed and implementing regulations, of 10 April 1986 
Law No. 6883, Control of the preparation and sale 
of animal feed, of 25 August 1983 Convention on International Trade in Endangered 
Species of Wild Fauna and Flora, Law No. 5605, of 
30 October 1974 
Authorization for the 
import or export of 
seeds National Seed 
Office 06, 10, 12 Phytosanitary 
measure Regulation No. 546, Regulations on the import, 
export and marketing of seeds, published in 
Official Journal No. 73 of 18 April 2005 Law No. 6289 on the National Seed Office, of 
4 December 1978 
Executive Decree No. 32994, Regulations governing the organizational structure of the 
phytosanitary service, of 4 April 2006 
Executive Decree No. 24973-MEIC-MAG, Technical Regulation:  "Procedures for the 
application of phytosanitary requirements for the 
import of plants, plant products and others capable of carrying diseases", of 16 May 2001 
Law on Phytosanitary Protection, No. 7664, of 
2 May 1997 Customs:  Circular DNP-051-98 
Sworn declaration on energy efficiency Ministry of the 
Environment and Energy, Sectoral 
Directorate for 
Energy 84, 85, 87 Environment Law No. 7447, Regulations on the Rational Use of 
Energy, of 13 December 1994 Executive Decree No. 25584, on the implementing 
regulations on the rational use of energy, published 
in Official Journal No. 215 of 8 November 1996 
Authorization for customs clearance of 
foodstuffs Ministry of Health, 
Directorate of 
Registration and 
Control 04, 09, 11-13, 
15-23, 25, 29, 
33, 35 Food safety Executive Decree No. 31968-S, amending the 
Regulations on notification of raw materials, 
sanitary registration, import, customs clearance and 
monitoring of foodstuffs, of 6 September 2004 Executive Decree No. 31595-S, Regulations on 
notification of raw materials, sanitary registration, 
import, customs clearance and monitoring of foodstuffs, published in Official Journal No. 16 of 
23 January 2004 
Permit for the import 
or export of drugs 
and narcotics and 
customs seals Ministry of Health, 
Department of 
Drugs and 
Narcotics, Control and Registration 13, 14, 29 Protection of 
human health Law No. 7786, on Narcotics, Psychotropic 
Substances, Unauthorized Drugs and Related 
Activities, of 15 May 1998, Supplement No. 15 
Law No. 8204, Comprehensive Reform of the Law on Narcotics, Psychotropic Substances, 
Unauthorized Drugs, Verification of Capital and 
Related Activities, of 11 January 2002 
Table III.5 (cont'd) WT/TPR/S/180/Rev.1 Trade Policy Review 
Page 38 
 
 
Requirement Authorizing entity  HS chapters 
affected Justification  Legal provisions 
Authorization for 
customs clearance of 
toxic and hazardous substances Ministry of Health, 
Department of 
Toxic Substances and Industrial 
Medicine 
 25-29, 32-34, 
36, 38, 68, 
78, 81, 84, 85, 90 Environmental 
protection Executive Decree No. 28113-S, on Regulations on 
the registration of hazardous products, of 
6 October 1999, Supplement No. 74 
Authorization for the import or export of raw materials, basic 
elements for 
medicines and cosmetics, 
medicines, cosmetics 
and medical equipment Ministry of Health, 
Department of Drugs and 
Narcotics, Control 
and Registration 12, 13, 19, 
29, 30, 33, 34, 38, 40, 
48, 56, 90, 96 Public health Executive Decree No. 28466-S, on Regulations on 
the registration, control, import and advertising of medicines, of 29 February 2000 
Executive Decree No. 29317-S, on Regulations on 
the registration, import, marketing and advertising of processed natural resources with medicinal 
properties, of 27 February 2001 
Executive Decree No. 30060-S, on Regulations on the notification, import and control of cosmetics, of 
15 January 2002 
Authorization for the 
import or export of 
precursors and 
chemical substances, including customs seals Office of the 
President, Unit for 
the Control and 
Inspection of Precursors 12, 22, 27-29, 
38 Public health Law No. 7786 on Narcotics, Psychotropic 
Substances, Unauthorized Drugs and Related 
Activities, of 15 May 1998, Supplement No. 15 
Law No. 8204, Comprehensive Reform of the Law on Narcotics, Psychotropic Substances, Unauthorized Drugs, Verification of Capital and 
Related Activities, of 11 January 2002 
Decree No. 19032-S, on Regulations on the import of precursors, chemicals and solvents, of 
27 June 1989 
Verification and 
phytosanitary 
approval by the State 
Phytosanitary Service ( Servicio 
Fitosanitario del 
Estado – SFE) of 
chemical, biological 
or like substances 
and equipment for use in agriculture, at 
the point of entry and 
exit, for customs clearance, export, 
national or 
international transit MAG, Department 
of Fertilizers and 
Pesticides 13, 25, 31, 
34, 38, 84 Public health; 
environmental 
protection, 
sanitary and phytosanitary 
measure Executive Decree No. 32994, on Regulations 
governing the organizational structure of the SFE, 
of 4 April 2006 
Law on Phytosanitary Protection, No. 7664, of 2 May 1997 
Executive Decree No. 26921-MAG, on 
implementing regulations for the Law on Phytosanitary Protection, of 22 May 1998 
Executive Decree No. 24337-MAG-S, on 
Regulations on the registration, use and control of agricultural pesticides and processing aids, of 
16 June 1995 
Executive Decree No. 27973-MAG-MEIC-S, Regulations on laboratory analysis of chemical and 
biological substances for agricultural use, of 
19 July 1999 Executive Decree No. 27630, Maximum pesticide 
residues in plants, of 17 February 1999 
Executive Decree No. 27041-MAG-MEIC, on Agrochemicals, taking of samples, 
9 September 1998 
Executive Decree No. 27037-MAG-MEIC, Registration and examination of equipment for applying chemical, biol ogical, biochemical or 
related substances for agricultural use, of 
7 September 1998, Supplement No. 59 
Permit for the import 
of explosives Ministry of Public 
Security, 
Department for the Control of Arms 
and Explosives 25, 28, 31, 
32, 36, 76 Public security Law No. 7530 on Arms and Explosives, of 
23 August 1995 
Executive Decree No. 25120-SP, implementing regulations for the Law on Arms and Explosives, of 
13 June 1996 
Executive Decree No. 32177, Regulations on the organization of the Ministry  of Public Security, of 
10 January 2005 
Table III.5 (cont'd)  Costa Rica WT/TPR/S/180/Rev.1 
 Page 39 
 
 
Requirement Authorizing entity  HS chapters 
affected Justification  Legal provisions 
Authorization for 
customs clearance of 
used clothing and footwear Ministry of Health, 
Department for the 
Control of Arthropods and 
Vermin 63 Public health Agreement No. 33,  Ministry of Finance, National 
Customs Service, Requirements for the customs 
clearance of used clothing, of 22 October 1997 Executive Decree No. 29807-S, reform of the 
Regulations on epidemiological surveillance and 
control of communicable diseases, of 24 September 2001 
Executive Decree No. 25471-S, amendments to the 
Regulations on epidemiological surveillance and control of communicable diseases, of 30 September 1996 
Executive Decree No. 17624, Regulations on 
epidemiological surveillance and control of communicable diseases, of 13 July 1987 
Authorization for 
customs clearance of 
radio equipment Ministry of 
Governance and 
Police, Department for National 
Control of Radios 85 Public health Decree No. 27554- G, implementing regulations for 
the National Frequency Allocation Plan, published 
in Official Journal No. 6 of 11 January 1999 
Permit for the import of arms Ministry of Public 
Security, Department for the 
Control of Arms 
and Explosives 87, 93 Public security Law No. 7530 on Arms and Explosives, of 
23 August 1995 Executive Decree No. 25120 –SP, implementing 
regulations for the Law on Arms and Explosives, of 
13 June 1996 Executive Decree No. 32177, Regulations on the 
organization of the Minist ry of Public Security, 
published in Official Journal No. 6 of 10 January 2005 
Permit for the import of ammunition Ministry of Public 
Security, Department for the 
Control of Arms 
and Explosives 93 Public security Law No. 7530 on Arms and Explosives, of 
23 August 1995 Executive Decree No. 25120 –SP, implementing 
regulations for the Law on Arms and Explosives, of 
13 June 1996 Executive Decree No. 32177, Regulations on the 
organization of the Ministry  of Public Security, of 
10 January 2005 
Import or export 
authorization by the 
National Chemical Weapons Authority Technical 
Secretariat, 
National Chemical Weapons Authority 28, 29 and 30 Public security Law No. 7571 approving the United Nations 
Convention on the Prohibition of the Development, 
Production, Stockpiling and Use of Chemical Weapons and on Their Destruction, of 
28 March 1996, Supplement No. 19 
Executive Decree No. 25118, on ratification of the United Nations Convention on the Prohibition of 
Chemical Weapons, of 13 May 1996, Supplement 
No. 27 Executive Decree No. 33015, Regulations on 
chemical security and na tional implementation of 
the United Nations Convention on the Prohibition of the Development, Pr oduction, Stockpiling and 
Use of Chemical Weapons and on Their 
Destruction, of 20 April 2006 
Authorization for the 
import, export or 
transit of sharks and 
shark fins Costa Rican 
Fisheries and 
Aquaculture Institute 
(Instituto 
Costarricense de 
Pesca y Acuacultura  
– INCOPESCA) 03 Environmental 
protection Law No. 7384 creating the Costa Rican Fisheries 
and Aquaculture Institute, of 29 March 1994 
Regulations on the protecti on, use and marketing of 
sharks and shark fins, Regulation No. 415, of 2 October 2003 
INCOPESCA Executive Board Agreement 
AJDIP/431-2005, Requirements for commercial fishing vessels arriving in Costa Rican ports with 
sharks, submission of unloading inspection request, 
of 21 September 2005 
Table III.5 (cont'd)  WT/TPR/S/180/Rev.1 Trade Policy Review 
Page 40 
 
 
Requirement Authorizing entity  HS chapters 
affected Justification  Legal provisions 
    INCOPESCA Executive Board Agreement 
AJDIP/499-2005.  Amendment to the request for 
inspection of the unloading of sharks, of 15 December 2005 
INCOPESCA Executive Board Agreement 
AJDIP/238-2002, Article 25:  "Requirements for authorizing the unloading of fisheries products", of 
7 October 2002 
INCOPESCA Agreement AJDIP/387-99, 24-11-99, fees for the sale of goods/services, of 7 December 2002 
Import or export 
permit of the 
Convention on International Trade 
in Endangered 
Species of Wild Fauna and Flora 
(CITES) Ministry of the 
Environment and 
Energy, Senior Directorate, 
Conservation Area 
Schemes 03 and 44 Species 
protection Convention on International Trade in Endangered 
Species of Wild Fauna and Flora, Law No. 5605, of 
30 October 1974 Law on Wildlife Conservation No. 7317 of 
7 December 1992 
Executive Decree No. 32633, on implementing regulations for the Law on Wildlife Conservation, 
of 20 September 2005 
Source : WTO Secretariat, on the basis of information provided by the Costa Rican authorities. 
67. Costa Rica received questions29 from three WTO Members concerning its import licensing 
procedures.  These related in particular to the sy stem for allocating tariff quotas as an import licensing 
procedure (see also Chapter IV(2)).  Costa Ri ca replied to the questions from one Member.30 
68. As regards existing import requirements, in practice these act as licences allowing the import 
of goods once the requirements have been met.  Th e majority of the requirements mentioned concern 
sanitary and phytosanitary protection, food safety,  public health and p ublic security measures. 
69. Since 2003, the system for allocating import qu otas has changed and the General Regulations 
on the Distribution and Allocation of Tariff Quotas fo r Imports came into effect pursuant to Executive 
Decree No. 30900-COMEX-MAG of 20 December 2002, published in Official Journal No. 3 of 
6 January 2003, amended by Executive Decree No. 32237-COMEX-MAG of 8 February 2005 (see 
Chapter IV(2)). 
70. As noted during the previous review, Costa Rica bans the import of a limited number of 
products for security, environmental protection, phytosanitary, food safety and sanitary reasons. 
(vii) Anti-dumping, countervailing and safeguard measures 
71. In 2002, the Office of Unfair Trade Practices and Safeguard Measures ( Oficina de Prácticas 
de Comercio Desleal y Medidas de Salvaguardia  – OPCDMS) was set up within the Ministry of the 
Economy, Industry and Trade (MEIC).  Decree No. 30637-MEIC of 12 August 2002 gave the OPCDMS the following responsibilities:  to advise th e Minister and the public in general regarding 
dumping, subsidies and the imposition of safeguard measu res;  to receive and deal with complaints on 
unfair trade practices caused by dumping or subsidies;  to receive and process requests for the 
imposition of safeguard measures;  and to conduct the relevant studies in order to determine the merits 
of complaints of unfair trade practices or the need to impose safeguard measures.  The MEIC and the Ministry of Trade, Directorate for the Implem entation of International Trade Agreements ( Dirección 
                                                     
 
29 WTO documents G/LIC/Q/CRI/4/Rev.1 of 28 August 2002, G/LIC/Q/CRI/1 of 29 January 1997, 
G/LIC/Q/CRI/2 of 28 January 1997 and G/LIC/Q/CRI/3 of 29 January 1997. 
30 WTO document G/LIC/Q/CRI/1 of 29 January 1997. Costa Rica WT/TPR/S/180/Rev.1 
 Page 41 
 
 
de Aplicación de Acuerdos  Comerciales Internacionales  – DAACI) have a cooperation agreement 
under which the DAACI provides assistance in the area of notifications. 
72. Between 2001 and August 2006, Costa Rica submitted the following notifications to the 
WTO:31  13 notifications on anti-dumping measures (AD)32;  four notifications relating to safeguards33 
and 22 notifications relating to countervailing measures.34 
73. The legal framework for applying AD, counter vailing and safeguard measures is found in the 
WTO provisions and Decree No. 24868-MEIC, appr oving the text of the Central American 
Regulations on Unfair Business Practices.35  In 2002, Costa Rica notified the Central American 
Regulations on Unfair Business Practices to the WTO.36 
74. In the case of AD and countervailing measures, investigations may be initiated ex officio, 
provisional measures may be imposed or price undertakings agreed. 
75. As already indicated, at the institutional le vel, Decree No. 30637-MEIC provides that the 
OPCDMS attached to the MEIC is the competent au thority for all administrative procedures involving 
the application of anti-dumping measures or c ountervailing duties.  This Decree amends Decree 
No. 24772-MEIC-MAG as far as the designation of the competent authority is concerned. 
76. Any definitive anti-dumping or countervailing duty  must be removed at the latest within 
five years from the date of imposition of the pr ovisional measure or, in its absence, the final 
resolution.  This time-limit may, exceptionally, be extended if it is proved that the conditions 
justifying imposition of the measure persist.  Once th e measure has been adopted, it may be revised at 
any time during the period it remains in force. 
                                                      
31 The WTO documents in question include semi-annual reports, other documents needed to comply 
with commitments in the Agreements and information submitted on the legal and institutional frameworks. 
32 WTO documents G/ADP/N/145/CRI of 31 August 2006, G/ADP/N/139/CRI of 1 March 2006, 
G/ADP/N/126/CRI of 4 March 2005, G/ADP/N/119/CRI of 25 August 2004, G/ADP/N/112/CRI of 15 April 2004, G/ADP/N/98/CRI of 5 September 2003, G/ADP/N/105/CRI of 5 September 2003, 
G/ADP/N/1/CRI/2/Corr.1-G/SCM/N/1/CRI/2/Corr.1 of 24 December 2002, G/ADP/N/92/CRI of 
9 December 2002, G/ADP/N/1/CRI/2 -G/SCM/N/1/CRI/2 of 5 Novemb er 2002, G/ADP/N/85/CRI of 
27 February 2002, G/ADP/N/78/CRI of 12 October 2001, G/ADP/N/72/CRI of 6 April 2001 and 
G/ADP/Q1/CRI/6-G/SCM/Q1/ CRI/6 of 7 May 2003. 
33 WTO documents G/SG/N/1/CRI/3 of 4 Nove mber 2002, G/SG/N/7/CRI/1/Suppl.1 of 
28 March 2002, and G/SG/N/6/CRI/1 and G/SG/N/7/CRI/1 of 19 March 2002. 
34 WTO documents G/SCM/N/144/CRI of 4 September 2006, G/SCM/N/146/CRI of 4 July 2006, 
G/SCM/N/138/CRI of 28 February 2006, G/SCM/N/130/CRI of 16 September 2005, G/SCM/N/123/CRI-
G/SCM/N/128/CRI of 5 July 2005, G/SCM/N/122/CRI of 7 March 2005, G/SCM/N/113/CRI of 
26 August 2004, G/SCM/N/114/CRI of 2 July 2004, G/SCM/N/106/CRI of 19 April 2004, G/SCM/N/98/CRI of 5 September 2003, G/SCM/N/95/CRI-G/SCM/N/99/CRI of 8 July 2003, G/ADP/N/1/CRI/2/Corr.1-
G/SCM/N/1/CRI/2/Corr.1 of 24 D ecember 2002, G/ADP/N/1/CRI/2-G/SCM/N /1/CRI/2 of 5 November 2002, 
G/SCM/N/71/CRI of 15 March 200 2, G/SCM/N/74/CRI of 20 Decem ber 2001, G/SCM/Q3/CRI/3 of 
26 April 2002, G/SCM/Q3/CRI/3/Corr.1 of 2 May 2002, G/SCM/Q3/CRI/5 of 12 June 2002, G/SCM/Q1/CRI/6 
of 7 May 2003, G/SCM/Q3/CRI/7 of 8 October 2004, G/SCM/Q2/CRI/9-G/SCM/Q3/CRI/9 of 24 October 2005 
and G/SCM/Q4/CRI/5/Rev.1 of 20 October 2006. 
35 Resolution No. 12-95 (COMRIEDRE II), Centra l American Regulations on Unfair Business 
Practices. 
36 WTO document G/ADP/N/1/CRI/2-G/SCM/N/1/CRI/2 of 5 November 2002. WT/TPR/S/180/Rev.1 Trade Policy Review 
Page 42 
 
 
77. Between 2001 and 2006, Costa Rica applied three AD measures.37  In one case, application of 
the measure was suspended because it was not deem ed necessary owing to the limited volume of 
trade.38 
Table III.6 
Anti-dumping procedures, 2001-2006 
Type of 
product Product Origin of 
imports Initiation of the 
investigation Provisional 
duties Definitive duties 
Production 
inputs Flexible packaging made of 
polypropylene, metallized, printed, 
entering Costa Rica under SAC (Central American Tariff System) tariff line 
3920.20.21 Chile 09/01/06 10.56% for four 
months n.a. 
Paint 
Water-based latex paint, entering 
Costa Rica under SAC (Central 
American Tariff System) tariff line 3209.90.10.00 United 
States 13/09/05 24.4.06 
dumping 
margin 516%, applied until 
24 November 
2006 (six months) 516% applied on 
31 January 2007 
for a period of four years 
Final products Lavatories and washbasins (to be built 
in or with pedestals) of glazed porcelain 6910.90.00 Venezuela 18/08/98.  The 
investigation ended on 27 September 2004 n.a. 27.09.2004 
n.a. Not applicable. 
Source : Prepared by the WTO Secretariat on the basis of information provided by the authorities and notifications to the 
WTO. 
78. As regards countervailing measures, the author ities have indicated that, during the period 
under review, Costa Rica had an undertaking39 with Colombia under which the latter undertook to 
eliminate subsidies on exports of palm olein and margarine for puff pastry, corresponding to tariff headings 1516.20 and 1517.10 respec tively, to the Costa Rican market. 
79. In 1996, Costa Rica adopted the Central Amer ican Regulations on Safeguard Measures, as 
notified to the WTO and examined by the Committee on Safeguards.
40  According to the provisions in 
these Regulations, provisional measures may be in troduced and must be guaranteed by security. 
Safeguard measures may be adopted in the form of  tariffs or a quantitative measure.  Provisional 
safeguard measures may be imposed for a maximum of 200 days and may only be in the form of 
tariffs.  Definitive measures may only be imposed for four years with extensions that may not exceed 
eight years. 
80. In the context of notification of laws and regulations pursuant to Article 12.6 of the 
WTO Agreement on Safeguards, Costa Rica received questions from a WTO Member41 relating to 
matters such as:  the time-limit for interested parties to oppose a me asure and provide evidence;  the 
process whereby the investigating au thority recommends the imposition of a provisional measure;  the 
public hearing;  the facilitation of ad justment in order to determine wh ether or not to apply a measure;  
consideration of the commitments within the CACM  framework;  whether a safeguard measure can be 
                                                      
37 WTO documents G/ADP/N/145/CRI of 31 August 2006, G/ADP/N/126/CRI of 4 March 2005, 
G/ADP/N/139/CRI of 1 March 2006 and G/ADP/N/119/CRI of 25 August 2004. 
38 WTO document G/ADP/N/119/CRI of 25 August 2004. 
39 WTO document G/SCM/N/144/CRI of 4 September 2006. 
40 The Regulations were adopted by Executive Decree No. 25242-MEIC of 31 May 1996.  The 
notification appears in WTO document G/SG/N/1/CRI/2 of  31 March 1998 and the replies to the questions 
posed in the Committee on Safeguards are contained in document G/SG/Q1/CRI/2 of 23 April 1999. 
41 WTO document G/SG/Q1/CRI/1 of 18 November 1998. Costa Rica WT/TPR/S/180/Rev.1 
 Page 43 
 
 
extended to imports from another Central American  country;  and the confidential treatment of 
information obtained during the investigati on.  Costa Rica replied to these questions.42 
81. Costa Rica has safeguards provisions in the FTAs in effect. 
82. Pursuant to Article 6 of the Agreement on Tex tiles and Clothing, in 1995 Costa Rica reserved 
the right43 to utilize the provisions of the transitional saf eguard mechanism allowed by this Article.  
During the period under review, Costa Rica did not submit any notifications on the adoption of safeguard measures under the Agreement on Textiles and Clothing.  Moreover, it reserved the right to 
apply special safeguards under the Agreem ent on Agriculture (see Chapter IV(2)). 
83. During the period 2001-2006, Costa Rica submitted three notifications
44 concerning safeguard 
measures pursuant to Article 12.1(a) of the WTO Agreement on Safeguards.  In 2002, Costa Rica 
notified45 that the OPCDMS attached to the MEIC is the competent authority for all administrative 
procedures involving the application of safeguard measures. 
84. Costa Rica notified46 the initiation of an investigation and the application of a provisional 
safeguard measure on imports of rice pursuant to  Resolution No. 19-2002 of 7 March 2002.  The 
measure came into effect on 12 March 2002 fo r a maximum period of 200 days and Costa Rica 
notified47 that the provisional safeguard measure had be en amended and the tariff surcharge increased.  
The measure was suspended as of 27 September 2002, after the 200 days, by Resolution No. 103-2002.  Costa Rica received questions from one Member on these measures and gave its 
replies.
48 
(viii) Technical regulations and standards 
85. Costa Rica notified the WTO49 that in May 200250 the Law on the National Quality System 
(Ley del Sistema Nacional para la Calidad  – LSNC) had entered into force under Law No. 8279 of 
21 May 2002.  It also notified51 that the authority responsible for notification procedures under the 
WTO Agreement on Technical Barriers to Trade was th e Directorate-General of Foreign Trade of the 
Ministry of Foreign Trade (COMEX).  Costa Rica also notified52 that the enquiry point for technical 
barriers to trade was administered by the Techni cal Secretariat of the Technical Regulation Body 
(Órgano de Reglamentación Técnica  – ORT);  the enquiry point's f unctions are defined in Article 10 
of the WTO Agreement on Technical Barriers to Trade, except as regards notification.  The 
Costa Rican Technical Standards Institute ( Instituto de Normas Técnicas de Costa Rica  – INTECO) 
                                                      
42 WTO document G/SG/Q1/CRI/2 of 23 April 1999. 
43 WTO document G/TMB/N/27 of 6 March 1995. 
44 WTO documents G/SG/N/6/CRI/1 and G/ SG/N/7/CRI/1 of 19 March 2002 and 
G/SG/N/7/CRI/1/Suppl.1 of 28 March 2002. 
45 WTO document G/SG/N/1/CRI/3 of 4 November 2002. 
46 WTO documents G/SG/N/6/CRI/1 and G/SG/N/7/CRI/1 of 19 March 2002. 
47 WTO document G/SG/N/7/CRI/1/Suppl.1 of 28 March 2002. 
48 WTO documents G/SG/Q2/CRI/1 of 7 August 2002 and G/SG/Q1/CRI/2 of 23 April 1999. 
49 WTO document G/TBT/2/Add.51/Suppl.1 of 10 March 2003. 
50 The entry into force of this Law repeal ed Executive Decree No . 24662 – MEIC-S-MAG-
MIRENEM-MOPT-PLAN – National Quality System of 27  September 1995 (published in Official Journal 
No. 191 of 9 October 1995), as specified in document G/TBT/2/Add.51 of 12 April 1999. 
51 WTO document G/TBT/2/Add.51/Suppl.1 of 10 March 2003. 
52 Ibid. WT/TPR/S/180/Rev.1 Trade Policy Review 
Page 44 
 
 
accepted the Code of Good Practice for the Prepar ation, Adoption and Application of Standards on 
19 December 1997.53 
86. The LSNC amended the legal framework and in stitutional structure for implementing the 
WTO Agreement on Technical Barriers to Trade.  It applies to technical regulations, voluntary 
standardization and conformity assessment, includ ing metrology, carried out in order to show 
compliance with voluntary or regulatory requirements applicable to goods and services. 
87. The National Quality Council ( Consejo Nacional para la Calidad  – CONAC) was set up 
under the LSNC in order to define the general ou tlines of the National Quality System (SNC), in 
accordance with relevant international obligations .  The CONAC is composed of those Ministers 
whose sphere of competence includes activities relate d to standardization, technical regulations and 
conformity assessment.54  It also includes repre sentatives of chambers of farmers, exporters, traders 
and industrialists, as well as universities and consum ers' organizations.  Its executive secretariat 
comes under the MEIC. 
88. The CONAC's technical committee is composed of the Costa Rican Metrology Laboratory 
(Laboratorio Costarricense de Metrología  – LACOMET);  the Costa Rican Accreditation Authority 
(Ente Costarricense de Acreditación  – ECA);  the ORT; and the National Standardization Authority 
(Ente Nacional de Normalización  – ENN) in the form of the Costa Rican Technical Standards 
Institute.  The LACOMET is the technical organizati on that deals with metrology and is the national 
metrology reference laboratory, providing services as  a secondary laboratory in areas within its sphere 
of competence.  The ECA55 is responsible for granting and issuing accreditation for testing and 
calibration laboratories, bodies responsible for ce rtifying quality management systems, the 
environmental management system, products and persons, and inspection bodies.  The ORT is an 
interministerial commission comprisi ng representatives of seven ministries56 and is responsible for 
coordinating the preparation of technical regulations  with the ministries concerned.  The INTECO is 
the certification authority authorized to certify quality systems. 
89. When drawing up technical regulations and conformity assessment procedures, Costa Rica 
follows two overall guidelines:  (i) the Regulations  on the Preparation and Presentation of National 
Standards (Executive Decree No. 19029-MEIC NCR of 7 June 1989);  and (ii) the Guidelines for the 
Preparation of Technical Regulations, anne xed to Decree No. 32068-MEIC-S-MAG-MICIT-MOPT-
COMEX-MINAE of 19 May 2004.  It also uses th e Guidelines for the Drafting and Presentation of 
Central American Technical Regulations.57 
90. Pursuant to Decree No. 19029, technical regulations must specify the sampling criteria and 
conditions, as well as the method used to preserve the sa mples;  where justified, a reference may also 
be made to an existing sampling standard.  The sampl es to be inspected are selected at random.  There 
must be references to the testing methods used to de termine or verify the values of the specifications.  
The analytical procedures must indicate the testing me thods used either specifically or by means of a 
reference so that the results can be reproduced. 
                                                      
53 WTO document G/TBT/CS/N/88 of 19 January 1998. 
54 For example, the Ministry of Foreign Trade;  the Ministry of Agriculture and Livestock;  the MEIC;  
the Ministry of the Environment and Energy;  the Ministry of Science and Technology;  the Ministry of Health;  
the Ministry of Public Works and Transport;  and the Ministry of Education. 
55 See http://www.eca.or .cr/eca_quees.htm. 
56 Its representatives come from the same ministri es as those belonging to the CONAC, with the 
exception of the Ministry of Education. 
57 See http://www.meic.go.cr/esp2/practicas/resolucione s.html.  These guidelines are an adaptation of 
ISO/IEC Directive 3.  Costa Rica adopted these Ce ntral American Regulations under Executive Decree 
No. 32878-COMEX-MEIC, published in Official Journal No. 30 of 10 February 2006. Costa Rica WT/TPR/S/180/Rev.1 
 Page 45 
 
 
91. As regards marks and labelling, the label must indicate the data required to identify and use 
the material or product concerned correctly, including the information prescribed in the legislation, regulations and official provisions in effect. 
92. When preparing technical regulations or conformity assessment procedures therefor, the time- 
limit for public consultation at the WTO is 60 calendar days, calculated from the date of the 
notification published at the WTO.  A third country  may request that this public consultation deadline 
be extended, prior to the expiry of the aforem entioned 60 days, but the extension must not exceed 
30 calendar or consecutive days.  The comments rece ived as a result of the public consultation are 
collected by the enquiry point for technical barriers to  trade, which transmits th em to the ORT so that 
it can decide whether to accept or reject them. 
93. Technical regulations may enter into force six months or more after publication in the Official 
Journal, if they contain implementation parameters, or  upon publication in the Official Journal, if they 
facilitate international trade. 
94. As regards the adoption of conformity assessm ent procedures, there are special protocols 
regarding sampling, inspection or verification.  Th e technical regulations include provisions on their 
implementation based on Costa Rican legislation and consensus reached at the national level. 
95. Conformity assessment is the responsibility of each Ministry according to its sphere of 
competence and the regulations it issues.  Ne vertheless, as the LSNC has gradually been 
implemented, the authorities have noted that Co sta Rica is seeking more dynamic and effective 
conformity assessment mechanisms, complementing the verification of technical regulations through 
bodies accredited by the ECA, according to a trust-b ased scheme that allows the State to fulfil its 
obligations and make better use of resources.  Third-party certifications are therefore promoted 
through applications for conformity certificates is sued by duly accredited bodies.  The State is also 
encouraging the conclusion of cooperation agreemen ts with national laboratories accredited by the 
ECA in order to carry out third-party tests. 
96. Regarding fees for conformity assessment procedures
58, the Executive Board of the ECA 
publishes in the Official Journal the fees payable for assessment services and accreditation of testing 
and calibration laboratories, and inspection and certification bodies. 
97. In Costa Rica, the Consumer Support Unit of the MEIC is responsible for ensuring 
compliance with the law as regards verification and market research concer ning quality and consumer 
information.  The Ministry of Health is responsib le for verifying health aspects in the market.  A 
cooperation agreement between the LACOMET and th e National Consumer Commission is in effect 
for the purpose of implementing a monitoring programme.  For agricultural products, border inspection is carried out by the SFE's Depa rtment of Plant Quarantine at the MAG. 
98. Pursuant to Law No. 8279 on the National Quality System, the ORT
59 has the task of helping 
to prepare technical regulations and recommending th e adoption, updating or annulment of technical 
regulations issued by the Executive.  The ORT h as a technical secretariat (coming under the MEIC), 
which also acts as the technical secretariat for the National Codex Alimentarius Committee and 
contact point, as well as organizing and administering the enquiry point for technical barriers to trade. 
99. Technical regulations are adopted by executive d ecree issued by each State authority.  There 
is no centralized publication of technical regulations  and each entity publishes its regulations in the 
                                                      
58 See http://www.eca.or.cr/docs/Tarifas.pdf. 
59 See http://www.reglatec.go.cr/ort.htm. WT/TPR/S/180/Rev.1 Trade Policy Review 
Page 46 
 
 
Official Journal.  There is also a digital version in the database of the enquiry point for technical 
barriers to trade. 
100. The authorities have stated that, at the end of  2006, some 207 technical regulations were in 
force, 52 of which had been adopted since January 2001. 
101. Among the technical regulations adopted duri ng the period 2001-2006, the vast majority 
related to technical specifications for products.  Fo r example, technical regulations were adopted in 
areas such as enriching cow milk;  risk assessment prior to authorization to import rice pursuant to 
technical regulation RTCR 379-2000;  and regulations on enriching rice. 
102. In accordance with the LSNC, the government au thorities promote the use and take an active 
part in the development of voluntary standards.  Article 45 of Law No. 8279 provides that every 
five years, upon recommendation by the Nationa l Quality Council, the Executive recognizes as the 
ENN the private non-profit-making body that has adopt ed the relevant international requirements and 
complied with them.  Following such recognition, th is body may take part in the activities carried out 
by other international standardization organizations. 
103. Law No. 8279 of 2002 recognized the INTECO60 as the ENN.  The CONAC ensures that the 
ENN complies with international standardization codes.  The INTECO, as the ENN, must comply 
with the ISO Code of Good Practice for Stan dardization.  The INTECO has published its 
standardization work plan for 2006.61 
(ix) Sanitary and phytosanitary measures 
104. In 2006, Costa Rica notified the WTO62 of Executive Decree No. 32994-MAG on 
Regulations Governing the Organiza tional Structure of the SFE.  The document determines the SFE's 
organizational structure in order to ensure that th e functions assigned to it by Phytosanitary Protection 
Law No. 7664, international agreem ents and other related laws ar e fulfilled.  Costa Rica also 
notified63 the General Law governing the SENASA No. 8495 of 16 May 2006, which regulates the 
protection of animal health, veterinary pub lic health and the operation of the SENASA. 
105. Costa Rica has made a number of proposal s in the WTO Committee on Sanitary and 
Phytosanitary Measures.64  In connection with the Committee's work, Costa Rica also notified that it 
had submitted partial and preliminary replies to the technical assistance questionnaire.65  I n  t h e  
Committee itself, concerns were expressed regardi ng SPS measures applied by Costa Rica relating to 
phytosanitary requirements for fresh oranges from Nicaragua.66 The authorities indicated that the 
purpose of Costa Rica’s notification on this matter was to facilitate trade.67 
106. Costa Rica's contact point for SPS measures is the MAG, through the SFE, the SENASA and 
the SPS enquiry and notification centr e, which belongs to both services.68 
                                                      
60 See http://www.inteco.or.cr/esp/normalizacion.html. 
61 See http://www.inteco.or.cr/doc/Plan_de_trabajo_2006.pdf. 
62 WTO document G/SPS/N/CRI/46 of 2 June 2006. 
63 WTO document G/SPS/N/CRI/45 of 1 June 2006 
64 WTO documents G/SPS/R/39 of 21 March 2006 , G/SPS/R/36 of 4 May 2005 and G/SPS/R/27 of 
2 August 2002. 
65 WTO documents G/SPS/GEN/295/Add.18 of 24 June 2002 and G/SPS/R/27 of 2 August 2002. 
66 WTO document G/SPS/R/39 of 21 March 2006. 
67 See paragraph 89, WTO document G/SPS/R/39 of 21 March 2006. 
68 WTO document G/SPS/NNA/10 of 6 October 2006. Costa Rica WT/TPR/S/180/Rev.1 
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107. Costa Rica's sanitary and phyto sanitary measures regime is organized within the SFE and the 
SENASA, which come under the MAG.  In addition,  the Ministry of Health, through the Registration 
and Control Directorate, regulates matters relating to food safety.  Sanitary and phytosanitary 
measures are incorporated in Costa Rica’s legal sy stem through laws, decrees and directives issued by 
the bodies with special responsibility for th e area to which each measure applies. 
108. The Animal Health Directorate of the M AG became the SENASA under Law No. 8495 of 
16 May 2006.  The SENASA is res ponsible for regulations and activ ities relating to animal health, 
residues, veterinary control of animal diseases, traceability, protection and safety of foodstuffs of 
animal origin, animal feed, veterinary medicin es, animal genetic material, production and use of 
genetically modified organisms, and hazardous subs tances of animal origin.  It is empowered to 
prohibit the import of such products if they represen t an unacceptable risk.  It also evaluates official 
veterinary services abroad.  The Government's offi cial laboratories may use outside laboratories. 
109. In mid-2006, because of new institutional provisions, Costa Rica's SFE was being 
reorganized.  Executive Decree No. 32994 gave  the Service new responsibilities, establishing 
departments responsible, inter alia , for monitoring and controlling non-quarantine diseases, the export 
of plants and plant products, the issuing of phytosan itary certificates, registration and approval of all 
chemical and biological substances, registration of  pesticides and quality anal ysis, and international 
negotiations on equivalence assessment.  Costa Ri ca's SFE also regulates trade in and use of 
genetically modified organisms fo r agriculture and their products. 
110. Sanitary and phytosanitary inspection is carried out at the border and at other sites designated 
by the Ministry of Agriculture.  All products of plant or animal origin that require sanitary or 
phytosanitary authorization must be inspected, so there are no random inspections. 
111. The cost of conformity assessment and inspection, as well as that of other technical services 
and laboratory analyses, including inspection visits , is paid according to scales established by an 
executive decree issued by the Ministry of  Agriculture through the SENASA and the SFE.69 
112. Risk analysis is mainly carried out by the SFE70 and the SENASA.71  The risk analysis 
procedure may be initiated at the instigation of th e Ministry of Agriculture through the SENASA and 
the SFE or at the request of the private sector. 
113. The International Regional Organization for Plant and Animal Health ( Organismo Regional 
de Salud Agropecuaria  – OIRSA)72 may undertake a risk analysis wh en a member State requests an 
opinion regarding any sanitary or phytosanitary problem in the region, but the OIRSA's 
recommendations or technical opinions are not binding and each country is free to accept or reject 
them.  There is also a Risk Analysis and Epidemiological Surveillance Commission ( Comisión de 
Análisis de Riesgo y Vigilancia Epidemiológica  – COMARVE), composed of representatives of all 
member countries. 
114. For imports, risk analysis commences with a detailed description of the goods it is sought to 
import and an indication of the probable annual vol ume of trade in the proposed import.  The risk 
analysis stages include identification of hazards, assessment, management and communication of the 
                                                      
69 See http://www.protecnet.go.cr/admin istraci%F3nsv/TARIFASVIGENTES.htm. 
70 See http://www.mag.go.cr/servicios/fitosanitario.html. 
71 See http://www.protecnet.go.cr/salud/W ebsaludanimal/epianalisisriesgos.htm. 
72 The following are members of the OIRSA: Mexi co, Guatemala, Belize, Honduras, El Salvador, 
Nicaragua, Costa Rica, Panama and the Dominican Republic. WT/TPR/S/180/Rev.1 Trade Policy Review 
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risk according to the OIE's recommendations and gui delines.  The outcome of the process is the risk 
analysis report, which is used for information on the risk and risk management. 
115. The time taken to draw up a risk analysis varies and depends on the goods, the country of 
origin, the sanitary situation in the country and region of origin, and the type of analysis, inter alia .  
The authorities have indicated that, in general terms,  risk analysis may take a week (e.g. for powdered 
milk), one to three months (e.g. for chicken or bovine  meat, eggs), or nine months (e.g. for biological 
products).  In the case of analysis of the likelihood of a disease entering Costa Rica, the analysis may 
last approximately six months. 
116. Regarding the SFE, disease risk analysis (ARP) consists of:  (i) identifying the disease and the 
paths that give rise to concern;  (ii) classifying th e disease, assessing the probability of entry, gaining 
a foothold and dissemination, and the potential econom ic consequences;  and (iii) defining options for 
risk reduction.  The international regulations a pplied when preparing ARPs are ISPN No. 2 and 
ISPN No. 11, contained down in the In ternational Plant Protection Convention. 
117. All plant products and by-products of plant origin require prior import authorization, as 
provided in Article 51 of Law No. 7664 on phytosanitar y protection.  By-products that undergo such a 
high level of processing that they do not entail any phytosanitary risk are not subject to this 
requirement.  The interested party must submit a written application for each import to the one-stop 
office at the Ministry of Foreign Trade usi ng the customs clearance authorization form ( Formulario 
de Autorización de Desalmacenaje  – FAD).  Applications for phytosanitary permits to import wild 
flora must also be approved by the Ministry of th e Environment.  Importers of plant products or by-
products used to prepare animal concentrates must be listed in the SENASA Animal Feed Register.  
Prior phytosanitary import authorization is valid for 30 days. 
118. Upon entry into Costa Rica, imports of plants, plant products or by-products of plant origin 
must be accompanied by the relevant phytosanitary cer tificate issued by the phy tosanitary authority of 
the country of origin, which must meet the requireme nts laid down in the prior import authorization.  
All imports of genetically modified products must  not only comply with all the requirements laid 
down in the handbooks or technical guides to sp ecific requirements but must also have an 
authorization from the Biosafety Commission, wh ich is obtained from the Technical Commission on 
Exemptions and Biotechnology of the Phytosanitary Protection Directorate of the MAG. 
119. Costa Rica allows the import of meat from an imals that have been given growth hormones 
from those countries which, like Cost a Rica, keep registers of hormone veterinary products based on 
the international standards and guidelines drawn up by the Joint FAO/WHO Expert Committee on 
Food Additives and the Codex Alimentarius.  Ho rmone products with duly established maximum 
residue limits (MRL) are authorized and this is verified through the sampling prescribed in the 
National Residues Plan. 
120. There are no databases centralizing all the SPS measures in effect in Costa Rica.  The 
SENASA and the SFE sites73 have different types of notices and information on SPS measures. 
121. During the period 2001-2006, Costa Rica submitted 30 SPS notifications to the WTO.  
According to the authorities, 25 per cent of these related to measures based on an international 
directive and 19 per cent concerned not ifications of emergency measures.74 
                                                      
73 See, for SENASA:  http://www.p rotecnet.go.cr/salud/Websaludanimal/indexsaludmag.htm;  and for 
the SFE:  http://www.prot ecnet.go.cr/sanivege.htm. 
74 Most of these notifications can be consulted at:  www.protecnet.go.cr. Costa Rica WT/TPR/S/180/Rev.1 
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122. In 1999, Costa Rica notified the WTO that, up to that date75 there had been no case of 
Newcastle disease, velogenic viscerotropic form (NVV),  recorded in Costa Rica.  In 2004, Costa Rica 
notified the WTO76 that the area of Inocentes and adjacent areas were free of the Mediterranean fruit 
fly Ceratitis capitata Wied (25 July 2003, Executive Decree No. 31567-MAG). 
123. Regarding the registration, use and control of  pesticides and like substances, Costa Rica 
recently approved Executive Decree No . 33495 of 10 January  2007 regulating everything to do with 
this area. 
124. Costa Rica did not sign any agreement on sanitary and phytosanitary measures during the 
period under review. 
125. According to the COMEX77, in 2005, in the context of the WTO Committee on Sanitary and 
Phytosanitary Measures, steps were taken to resolve the question of the sanitary restrictions applied 
by Panama to dairy produce from Costa Rica. 
(3) MEASURES DIRECTLY AFFECTING EXPORTS  
(i) Registration, documentation and export licences 
126. During the period 2001-2006, Costa Rica continued to strive to harmonize and computerize 
its export procedures.  As required by the General Cu stoms Law, all exporters must be registered with 
the Foreign Trade Promotion Agency ( Promotora de Comercio Exterior  – PROCOMER).  Each 
exporter is given a code to be used integrally at the PROCOMER, the Central Bank of Costa Rica and 
the Directorate-General of Customs (DGA).  Regi stration is valid for one year and may be done 
electronically or in person at the PROCOM ER's one-stop office for foreign trade ( Ventanilla Única de 
Comercio Exterior  – VUCE).  For enterprises coming under the Free Zone Regime, registration of 
exporters is done directly with the PROCOMER 's operations management office and the DGA. 
127. There are preliminary formalities for all exports consisting of an export form showing all data 
concerning the shipment of the goods.  There are three types of export form:  (i) the customs export form ( Declaración Aduanera de Exportación  – DAE);  (ii) the FAUCA;  and (iii) the provisional 
customs exports declaration ( Declaración Aduanera de Exportación Provisional  – DAEP).  In order 
to complete the preliminary formalities using any of the above forms, an exporter must be registered.  
The integrated one-stop office for foreign trade scheme ( Sistema Integrado de Ventanilla Única de 
Comercio Exterior  – SIVUCE)
78 allows preliminary export docum entation to be processed using 
"prestamped" export forms.79  This system includes the VUCE, which has offices and an electronic 
site, under the responsibility of the PROCOMER in  order to streamline and simplify the export 
documentation process.80 
128. The DAE is a declaration used both for the cu stoms clearance procedure and to control the 
entry or registration of foreign currency.  It is  valid for 15 working days or 20 consecutive days as 
                                                      
75 WTO document G/SPS/GEN/119 of 7 May 1999. 
76 WTO document G/SPS/GEN/527 of 27 October 2004. 
77 COMEX (2006), Informe Anual de Labores a la Asamblea Legislativa, mayo 2005 – mayo 2006 .  
See http://www.comex.go.cr/informacion/Informe%20de%20Labores%202005-%202006.pdf. 
78 See http://servicios.procomer.go.cr/base/sivuce/. 
79 See www.procomer.com. 
80 Export formalities are not completed at the one-stop office but directly with the customs in the 
following cases:  household articles;  vehicles of no commer cial value;  re-exports;  personal effects;  gifts of 
goods;  return, replacement of goods and packing materi al under the inward proce ssing regime;  exports under 
the outward processing regime (goods that  are temporarily exported for repair). WT/TPR/S/180/Rev.1 Trade Policy Review 
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from the date of submission of the preliminary formalities at the VUCE.  The FAUCA is the only 
document required for goods that are the subject of free trade within Central America.  The DAEP is an alternative to the DAE issued fo r exports for which the final date of shipment is not known.  All 
the data in a DAEP must be revised or conf irmed in a DAE 48 hours from the time on which the 
goods are actually shipped. 
129. The General Customs Law provides that goods su bject to customs control may be inspected 
and verified, including exports.  Special informa tion and procedures apply to exports of bananas and 
coffee when preliminary formalities are carried out at the VUCE.  Exports of roasted coffee (ground 
or in beans) require the submission of a permit from the Costa Rican Coffee Institute ( Instituto de 
Café de Costa Rica  – ICAFE), together with an additiona l photocopy of the export form and the 
commercial invoice.
81  If export of wood or wood products is authorized, information on the type, 
volume and weight of the product must be submitted. 
130. The PROCOMER issues certificates of orig in for goods exported under the unilateral 
preferences granted by Costa Rica (see Chapter II(6)).  As far as bila teral treaties are concerned, the 
exporter is responsible for certifying the origin, w ithout any involvement of a competent authority, 
with the exception of the FTA with the CARICOM a nd the partial scope agreements with Panama and 
Venezuela. 
(ii) Export charges and minimum prices 
131. Banana exports are subject to a tax irrespective of their destination, determined in 
Law No. 5515 of 19 April 1974.  A tax of US$1.00 per box or container of 40 lb net of bananas 
exported is imposed.  Banana producers receive US$0.0 11 per box exported from this tax.  The tax is 
paid by the companies buying or marketing the bana nas directly to CORBANA in order to establish a 
price compensation fund.  In 2004, revenue from the US$1.00 export tax amounted to C1,301,067,037 (corresponding to around US$4.5 million). 
132. Since 1 January 2006, Decree No. 32837-MAG-MEIC-COMEX of 12 December 2005
82 has 
imposed a minimum price for banana exports f.o.b. from Costa Rican ports amounting to US$5.70 per 
18.14 kg net box of top quality bananas. 
133. As far as coffee is concerned, in order to finance the operation, maintenance and 
administration of the ICAFE, Law No. 2762 determ ined a tax corresponding to 1.5 per cent of the 
f.o.b. value of the coffee exported per 47 kg unit of green coffee or its equivalent. 
134. Forestry Law No. 7575 of 5 February 1996 lays down the requirements for calculating the 
minimum value of unprocessed logs.  According to this  Law, the State Forestry Authority determines 
annually by decree the minimum value of unprocessed l ogs to be sold according to the different types 
of timber.  The latest resolution establishing a minimum value for logs is that of 28 September 2001. According to the authorities, at the end of 2006 no minimum value was applied because the resolution 
had been contested. 
(iii) Export prohibitions and other restrictions 
135. Export prohibitions are mainly imposed for reasons of national security, protection of 
Costa Rica's heritage and for environmental reaso ns (Table III.7).  Costa Rica has undertaken to 
                                                     
 
81 The harvest, number of the permit, number of the contract, f.o.b. value per bag, f.o.b. value of green 
coffee, the gross and net weight of the gree n coffee and roasted coffee must be shown. 
82 Amending Article 1 of Executive Decree No. 4770-MI EC of 25 April 1975 and amendments thereto. Costa Rica WT/TPR/S/180/Rev.1 
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impose restrictions on the export of certain products  under the Convention on International Trade in 
Endangered Species of Wild Fauna and Flora;  the Basel Convention on the Control of Transboundary 
Movements of Hazardous Wastes and their Disposal ;  and the Montreal Protocol on Substances that 
Deplete the Ozone Layer.  Exports of goods that  form part of Costa Rica's cultural, artistic, 
archaeological and historical heritage are also restricted. 
Table III.7 
Export prohibitions and restrictions 
Product description Measure  Reason Statutory instrument 
Shark fins, cartilage, maws, tilapia 
and ornamental fish Permit (INCOPESCA) Recording and 
monitoring of fisheries 
statistics Law No. 7384, INCOPESCA 
Law of 16.2.84 
Coffee (roasted, in beans or ground) Permit (ICAFE) Recording and 
monitoring of statistics 
on coffee production and exports ICAFE Law No. N° 2762 of 
21.6.61.  Executive Decree 
No. 28018-MAG of 9.8.99 
Textile fibres of any plant materials and textiles and clothing exported to any third market outside of the 
Central American area Permit (Council for Textile 
Quotas)  Recording and 
monitoring of statistics on third markets for 
export statistics purposes Executive Decree No. 24304 
of 24.5.95 
All exports of textiles and clothing, whether or not subject to quantitative restrictions, must have 
a prior permit (Textile Export 
Permit) issued by the National Association of Textile Industry 
Exporters.  This requirement does 
not apply to exports intended for 
countries belonging to the CACM. Permit Distribution of textile 
and clothing quotas allocated to Costa Rica 
by its trade partners Article 33 of Executive 
Decree No. 24304 
Sugar in bulk Permit  from the Sugar Cane 
Agricultural Industry League 
(Liga Agrícola  Industrial de la 
Caña de Azúcar  – LAICA) Recording and  
monitoring of statistics 
on sugar production and exports Law No. 7818, LAICA Law 
of 2.9.98 
Coins (Costa Rican only) Ban  (Central Bank of Costa Rica) Protection of the money 
supply Resolution of the Governing 
Board of the Central Bank, 
Ordinary Meeting No. 2852-74 of 11.3.74 
Human organs Ban (Ministry of Health) Public health General Health Law, Law 
No. 5395 of 30.10.73 
Plasma and blood Authorized for research purposes 
only (Ministry of Health) Public health General Health Law, Law 
No. 5395 of 30.10.73 
Ceramic (clay) ornaments Permit (National Museum) Protection of the cultural 
heritage Law No. 6703, Article 31, 
Law No. 6091 of 7.10.77 
Indigenous relics Export ban Protection of the cultural 
heritage Law on the National 
Archaeological Heritage, 
Law No. 6703 of 28.12.81  
Reproductions of indigenous 
articles in stone, gold, clay or ceramics and other Permit (National Museum) Protection of the cultural 
heritage Law No. 6703, Article 31, 
Law No. 6091 of 7.10.77 
Weapons, ammunition and 
explosives Permit  (Ministry of Public 
Security) Public security  Law No. 7530 of 10.7.95 and 
Executive Decree No. 25120-SP of 17.4.97 
Phosphorus (Chapter 36, excluding 
matches) Permit (Ministry of Public 
Security) Public security Law No. 7530 of 10.7.95 and 
Executive Decree No. 25120-SP of 17.4.97 
Industrial ammonium nitrate 
(Chapter 31) Permit (Ministry of Public 
Security) Public security Law No. 7530 of 10.7.95 and 
Executive Decree No. 25120-SP of 17.4.97 
Seeds Permit (National Seeds Office) Recording and 
monitoring of statistics on seed exports Law No. 6289, Seeds Law, 
of 4.12.78 
Dogs and cats Health Monitoring Department, 
Ministry of Health Public health Animal Health Law No. 6243 
Regulation 14584-A of 
16.5.83 
   Table III.7 (cont'd)  WT/TPR/S/180/Rev.1 Trade Policy Review 
Page 52 
 
 
Product description Measure  Reason Statutory instrument 
Protected species of wild fauna and 
flora, live or dried, grindstones, 
sand, calcium carbonate, gold and 
silver, orchids (not in flower), soil Permit  (Ministry of the 
Environment and Energy) Environmental 
protection  Law No. 5605 of 30.10.74;  
Law No. 7317 of 7.12.92;  
Executive Decree No. 26435-MINAE of 
1.10.97 
Controlled substances such as precursors, essential chemicals and 
machinery and accessories used for producing narcotics and 
psychotropic substances in tablet or 
capsule form Prior authorization (Ministry of 
Health) Narcotics control Narcotics, Psychotropic 
Substances, Unauthorized 
Drugs and Related Activities Law, Law No. 7786 of 
30.4.98 
Logs and roughly squared timber 
from forests of various species Ban Protection of the 
environment Forestry Law, Law No. 7575 
of 13.2.96 
Live cattle, natural honey, flowers and cotton on the stem Prior export permit   
Source : WTO Secretariat, based on information supplied by the Costa Rican authorities . 
136. Article 26 of Forestry Law No. 7575 of 13 Febr uary 1996 bans the expor t of logs and roughly 
squared wood from forests of specific species (Tab le III.7).  The objective of the Forestry Law is, 
inter alia , to ensure the conservation of natural forest s, the industrialization of forestry resources 
intended for this purpose and the creation of empl oyment.  The authorities have pointed out that 
Article 26 of Forestry Law No. 7575 is part of the policy for the recovery and sustainable use of forests, an area in which Costa Rica has made  substantial progress over the past two decades. 
137. According to the Regulations on the Distribution and Administration of Quotas for Textile 
and Clothing Exports, Executive Decree No. 24304 of  24 May 1995, exports of textiles and clothing 
that were subject to quantitative restrictions until the end of 2004 under the WTO Agreement on 
Textiles and Clothing and those under the Costa Rica -Canada tariff preference s must have an export 
permit issued by the National Association of Textile Industry Exporters. 
138. Costa Rica still participates in  the Association of Coffee Producing Countries (ACPC), 
through which retention quotas on exporta ble coffee production can be applied. 
(iv) Subsidies and other export-related tax benefits 
(a) Subsidies 
139. In December 2001, Costa Rica submitted a request
83 for extension of the period for the 
application of export subsidies under two programmes:84  the Free Zone Regime and the Inward 
Processing Regime.  With respect to these two programmes, the Committee on Subsidies and 
Countervailing Measures decided85 that the extension for the elimination of export subsidies in the 
form of full or partial exemption from import du ties and internal taxes under these programmes could 
continue until the end of 2007.  The Committee al so decided that, after 2007, it would examine any 
request for continued extension in relation to these two programmes and that a final period of 
two years referred to in the paragraph in question could be allowed if continuation was not requested 
or granted. 
                                                      
83 WTO document G/SCM/N/74/CRI of 20 December 2001. 
84 Pursuant to Article 27.4 of the Agreem ent on Subsidies and Countervailing Measures 
(WTO document G/SCM/39 of 20 November 2001). 
85 WTO documents G/SCM/61 of 6 December 2002,  G/SCM/61/Add.1 of 31 October 2003, 
G/SCM/61/Add.2 of 16 November 2004, G/SCM/62 of 6 December 2002, G/SCM/62/Add.1 of 
3 November 2003, G/SCM/62/Add.2 of 16 November 2004 and G/SCM/62/Add.3 of 31 October 2005. Costa Rica WT/TPR/S/180/Rev.1 
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140. In mid-2006, Costa Rica notified that, at that  time, the Free Zone and Inward Processing 
programmes had not been modified.86 
(b) Free Zone Regime 
141. Free zones are the most important export promoti on instruments in Costa Rica.  The principal 
legal provisions are contained in the Law on the Free Zone Regime No. 7210 of 23 November 1990, 
amendments thereto and its implementing regulations.87  The latter are contained in Executive Decree 
No. 29606-H-COMEX of 18 June 2001 and amendments  thereto.  Other relevant provisions on free 
zones can be found in the General Customs Law No. 7557 of 20 October 1995, Section I, Chapter V, 
and amendments thereto88;  the implementing regulations for the General Customs Law, Chapter X;  
and Executive Decree No. 25270-H of 28 June 1996 and amendments thereto.89 
142. The Free Zone Regime includes benefits give n to companies that make new investments, 
provided that they meet the requirements and obligations laid down in the Law on the Free Zone Regime.  The purpose of this Law is to promot e socio-economic development by attracting both 
foreign and domestic investme nt and by promoting exports. 
143. In order to be eligible for the Free Zone Re gime, companies must be engaged in handling, 
processing, manufacturing, producing, repairing or  maintaining goods or supplying services intended 
for export or re-export.  The Free Zone Regime  only applies to companies whose new initial 
investment in fixed assets amounts to at least US $150,000 within the free zone industrial park and 
US$2 million if it is outside the park.  Likewise, th e establishment of satellite plants outside the free 
zone industrial park in which the main plant has b een authorized is allowed on an exceptional basis. 
144. Companies eligible for the Free Zone Regime
90 may introduce into Costa Rican customs 
territory up to 25 per cent of their total sales, subj ect to compliance with the requirements laid down 
in the Law.  The percentage is up to 50 per cent for companies exporting services.  Trading companies 
may not sell in Costa Rican territory. 
145. Incentives under the Free Zone Regime include:  (i) exemption from all taxes and consular 
fees on imports of raw materials, spare parts, packing materials and other products, machinery, 
equipment, replacement parts, fuel and oil;  (ii)  exemption from all tax relating to the export or 
re-export of products;  (iii) exemption from paymen t of tax on capital and net assets and payment of 
the land tax;  (iv) exemption from sales and c onsumption tax on purchases of goods and services;  
(v) exemption from all taxes on profits;  (vi) exemption from any municipal or business tax.  
Companies situated in relatively less-developed ar eas, which came under the Free Zone Regime prior 
to 8 October 2003, also have the right to a credit of 10 per cent of the amount paid as salaries during 
the year immediately preceding;  this percentage  falls by two percentage points per annum until the 
benefit expires in the fifth year, i.e. in 2008.  Export processing companies which, on completion of 
                                                      
86 WTO document G/SCM/N/146/CRI of 4 July 2006. 
87 The main amendments to Law No. 7210 are:  Law No. 8262 of 2 May 2002 (amending Article 23 of 
Law No. 7210);  Law No. 7830 of 22 September 1998;  Law No. 4924 of 17 September 1997;  Law No. 7638 of 30 October 1996;  Law No. 7535 of 1 August 1995;  and Law No. 7467 of 20 December 1994. 
88 The amendments to the General Customs Law No. 7557 of 20 October 1995 are:  Law No. 7900 of 
3 August 1999;  Law No. 8373 of 4 August 2003;  and Law No. 8419 of 28 June 2004. 
89 Executive Decree No. 25295 of 17 June 1996, Executive Decree No. 26285 of 18 August 1997, 
Executive Decree No. 26961 of 30 Ma rch 1998, Decree No. 27717 of 23  February 1999, Executive Decree 
No. 28242 of 30 September 1999, Executive Decree No. 28976 of 27 September 2000, Executive Decree No. 31667-H of 5 March 2004, and Executive Decree No. 32098 of 23 September 2004. 
90 Except for export trading companies with no pr oduction activity which merely handle, repack or 
redistribute non-traditional merchandise and products for export or re-export. WT/TPR/S/180/Rev.1 Trade Policy Review 
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four years of operations, reinvest in Costa Rica may be given an additional exemption from payment 
of income tax for a percentage corresponding to th e ratio of the reinvest ment to the original 
investment. 
146. The benefits available may be for an indefin ite period or for the time-limits defined as 
indicated in Table III.8.  The authorities have pointed out that, under the executive agreements on 
benefits in free zones, Costa Rica introduced cha nges in the granting of benefits providing that the 
time-limits, terms and c onditions for the benefits granted under Law No. 7210 were subject to 
Costa Rica's commitments in the WTO.91 
147. Pursuant to Law No. 7638 of 30 October 199 6, the PROCOMER is responsible for 
supervising the Free Zone Regime and for dealing with  applications by companies to be accepted for 
the Regime and benefit from the relevant incentives. 
Table III.8 
Free Zone Regime incentives 
Type of incentive Features and time-limits 
Exemption from taxes on capital and net assets, the 
land taxa and the property transfer tax Valid for 10 years 
Exemption from all profits tax and any other tax for 
which the taxable base is determined according to gross or net earnings, dividends paid to 
shareholders or revenue or sales For companies based in "relatively more developed areas", the exemption is 
100 per cent for eight years and 50 per cent for the following four years. For companies based in "relatively less-de veloped areas", the exemption is 100 per 
cent for up to12 years and 50 per cent for the following six years. 
Export-processing companies which reinve st in Costa Rica after completion of 
four years of operation under the Regime ar e eligible for a further exemption of 
75 per cent for up to four years depending on the amount reinvested. 
Exemption from all municipal or business taxes Ten years 
a Law No. 7509 on property tax of May 1995 a bolished exemption from the land tax.  
Source : Information provided by the authorities an d notification to the WTO (G/SCM/N/146/CRI). 
148. The authorities have notified the WTO92 that the comprehensive information required to 
estimate the amount of the subsidy granted under the Free Zone Regime is not available as the subsidy 
involves exemptions from a number of different tax es and consular fees, which vary according to the 
level of compliance with the specified requirements. 
149. The overall impact of free zones on the economy is considerable, particularly in terms of 
exports (see Chapter IV(3)). 
150. A study by the Ministry of Trade indicates93 that for some 35 per cent of the companies the 
time-limits in the free zone contracts will give 100 per cent exemption from income tax after 2010 and 
70 per cent of these will have 50 per cent income tax exemption incentives going beyond that date.  This study suggests that Costa Rica should focus on granting incentives to sectors that have the 
potential to contribute towards its greater economic gr owth rather than directly for export activities. 
                                                     
 
91 See, for example, Executiv e Decree No. 278-2006 of 14 November 2006, clause 4. 
92 WTO document G/SCM/N/146/CRI of 4 July 2006. 
93 COMEX (2006b). Costa Rica WT/TPR/S/180/Rev.1 
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151. At the end of 2006, the Ministry of Foreign Trade was working on proposed amendments to 
Law No. 7210 on free zones.94  According to the authorities, the aim of this proposal is not only to 
introduce amendments in order to comply with co mmitments on phasing out export subsidies but also 
to ensure the continuity of the investment already in Costa Rica and its legal predictability, as well as 
to promote higher volumes of investment.  It is in tended to modify the eligibility criteria for those 
benefiting from the Regime, to incorporate a de gree of tax-related competitiveness in comparison 
with other countries in the region, to create ince ntives to encourage companies to set up in less-
developed areas, and to include tax credits for sk ills development and trai ning and parameters to 
strengthen the links between companies in the free zon es and local industry.  As part of the exercise of 
preparing proposed amendments to the Free Zone Regime, at the end of 2006, the authorities were 
studying its costs and benefits. 
(c) Inward Processing Regime 
152. The legal bases for the Inward Processing Regi me are to be found in the General Customs 
Law No. 7557 of 20 October 1995, Chapter VI (Processing Regimes) and amendments thereto;  the 
implementing regulations for the General Customs Law, Chapter XIII (Inward Processing Regime);  
Executive Decree No. 25270-H of 28 June 1996 and amendments thereto;  and the Regulations on the 
Inward Processing and Duty Refund Regime s, Executive Decree No. 26285-H-COMEX of 
19 August 1997.  During the period under review, Costa Rica made a number of amendments to the 
Regulations on the Inward Processing and Duty Refund Regimes.95  The purpose of the Inward 
Processing Regime is to promote production, empl oyment and foreign and dom estic investment and, 
as a result, to increase exports and domestic consumption. 
153. The Inward Processing Regime allows goods to  enter national customs territory with 
suspension of all kinds of tax and subject to pr ovision of security.  It does not include income 
tax-related benefits.  The goods co vered by this Regime must be re-exported within the time-limits 
laid down in the regulations, after undergoing pr ocessing, repair, reconstruction, installation, 
assembly or after being incorporated in systems,  machinery, transport equipment in general or 
appliances with a higher degree of technological or fu nctional complexity or after being used for other 
similar purposes.  The goods must be re-exported within  a non-renewable period of one year, with the 
exception of machinery and accessories, which may re main for an indefinitely renewable period of 
five years. 
154. In order to be eligible for this Regime, companies must choose one of the two options 
available:  (i) the 100 per cent direct or indirect re-export option, which does not allow the sale of 
products in the domestic market;  or (ii) the dir ect or indirect re-export and domestic sale option, 
which allows goods to be sold in the domestic market or re-exported.  Companies operating under the 
domestic sale option are required to pay the full tax a pplicable to the definitive import of the inputs.  
On the entry of machinery and equipment under the Re gime, they must also pay the proportion of tax 
corresponding to the percentage of sales in the domes tic market as a ratio of the company's total sales. 
155. The Regime's benefits apply as from the date of issue of the authorization to commence 
activities and the corresponding authorization from the Directorate-General of Customs.  Except in 
the event of revocation of the authorization under the Regime by the Ministry of Foreign Trade or 
                                                      
94 Idem . 
95 Executive Decree No. 32982-H-COMEX of 10 March 2006, Executive Decree No. 31848-COMEX-H 
of 25 May 2004, Executive Decree No. 30125-MAG of 25 January 2002, Executive Decree 
No. 29607-H-COMEX of 18 June 2001, Executive Decree No. 29286-H-COMEX of 31 January 2001, and 
Executive Decree No. 29055-H-COMEX of 31 October 2000. WT/TPR/S/180/Rev.1 Trade Policy Review 
Page 56 
 
 
relinquishment by the company covered by the Regime, the benefits are granted indefinitely subject to 
an application for extension made to the COMEX every five years. 
156. As in the case with the Free Zone Regime, ove r the period 2000-2005 the amount of exports 
and jobs created under the Inward Processing Regime tended to grow at a slower rate than in the 
1990s.  In 2006, around 90 companies were opera ting under this Regime;  in 2005 it provided 
employment for around 11,654 people and accounted for some 5 per cent of Costa Rica's total exports 
(US$336.8 million);  in 1999, exports under the Regime amounted to US$370 million, corresponding 
to 5.5 per cent of total exports of goods.  The main destinations for exports under this Regime include 
the United States and Central America, with sh ares of 86 per cent and 6 per cent respectively. 
157. Some of the firms operating under the Inward Processing Regime are located in areas with 
little urban development and accordingly represent a very significant source of employment in the 
regions concerned.96 
(d) Tax credit certificates 
158. Costa Rica notified the WTO97 of the tax credit certificate ( Certificado de Abono Tributario  – 
CAT) as a subsidy granted solely to enterpri ses that signed an export contract before 
2 December 1992 and which received a reduction of 30 per cent of the amount of the Certificate prior 
to 1996, calculated on the basis of the f.o.b. valu e of the exports.  Companies fulfilling these criteria 
have the right to receive a CAT of:  (i) 10.5 per cent when the product exported includes 35 to 
50.5 per cent of national content and is exported to third markets;  (ii) 14.0 per cent when the product 
exported includes 50.51 per cent or more of nationa l content and is exported to third markets other 
than the United States and Puerto Rico.  CATs are freely negotiated non-interest bonds.  They are 
issued by the Central Bank of Costa Rica in national currency and are used to pay direct or indirect 
taxes collected by the Central Bank as the State Treasurer. 
159. In December 1999, Costa Rica notified termination of the CATs.98  For exports between 1998 
and 1999, in 2003 (through Official Journal No . 233, 3 December 2003), the Central Bank of 
Costa Rica communicated99 the rules for the CAT issuing procedur e.  Authorization was given for the 
issue of CATs by the Central Bank of Costa Rica based on a recommendation by the PROCOMER 
and with the approval of the Ministry of Foreign Trade.  In turn, the Ministry of Foreign Trade, in DMR.219-2003 of 4 December 2003, laid down the Gu idelines for Processing Applications for Tax 
Credit Certificates (CATs).
100  The authorities have indicated that , in 2006, 493 applications were 
received for an amount of C 2,320.8 million (US$4.6 million).  At December 2006, only 
54 applications had been the subject of paymen t for a total of C 207.9 million (approximately 
US$409,574). 
(e) Other programmes 
160. The Export Promotion Law, Law No. 5162 of 22 December 1972, introduced export increase 
certificates ( Certificados de Incremento a las Exportaciones  – CIEX), which give companies that 
meet the required conditions an amount correspondi ng to 10 per cent of the in crease in their exports 
for the preceding year.  According to the aut horities, the last CIEX was issued in 1988. 
                                                      
96 WTO document G/SCM/N/146/CRI of 4 July 2006. 
97 WTO document G/SCM/N/48/CRI-G/SCM/N/60/CRI of 21 July 2000. 
98 WTO document G/SCM/N/60/CRI of 21 July 2000. 
99 Article 14 of the record of session 5176-2003 (19 November 2003). 
See:  http://www.procomer.com/ eventos/docs/Acuerdo%20BCCR%20para%20tramites%20de%20CAT.PDF. 
100 See http://www.procomer.com/eventos/docs /Directrices%20CAT-diciembre%202003-.pdf. Costa Rica WT/TPR/S/180/Rev.1 
 Page 57 
 
 
161. The Drawback Regime allows the refund of sums actually paid or deposited with the tax 
authorities as tax contributions for the definitive import of inputs, packing or wrapping materials 
incorporated in products for export, provided that export occurs within 12 months from import of the 
goods.  This Regime is defined in Chapter VII, Ar ticle 190, of Law No. 7557 (General Customs Law) 
of 20 October 1995. 
(v) Financing, insurance, promotion and other measures 
162. Over the period 2001-2006, Costa Rica did not have any official export financing programme. 
163. The Central American Economic Integrati on Bank (BCIE) has a programme to support 
Central America's exportable production ( Programa de apoyo a la producción exportable 
Centroamericana  – PAPECA), for which the private sector in  Costa Rica is eligible.  Under this 
programme, short-term credit (mu ltiple 30-day periods for up to 180 days) is granted for pre- and 
post-shipment operations, import of inputs, letters of credit and working capital.  The interest rate is 
the Libor 180 + 1.50 points.101 
164. The Bank of Costa Rica, a State entity, provides commercial banks with resources to finance 
the working capital needs of companies, giving priority to those engaged in producing goods for 
export or providing services to facilitate the export of  such goods.  The credit terms include the basic 
borrowing rate plus 3.5 percentage points for a ma ximum term of 30 months, with a maximum grace 
period of 12 months.  In the case of credits authorized to meet the cost of penetrating foreign markets, 
the maximum term is five years with a maximum grace period of two years.  Up to 100 per cent of the needs are financed. 
165. The National Insurance Institute ( Instituto Nacional de Seguros – INS) has exclusive export 
credit insurance programmes which guarantee the po licy holder the refund of a percentage of any 
losses it may incur because of total or partial defa ult on a credit given to a foreign buyer.  Export 
credit insurance policies cover the fo llowing commercial risks:  insolv ency of the buyer, and extended 
delays in payment six months after expiry of the credit term or its extension.  The overall insurance 
covers all export credits with terms of up to 180 days  for one year, given by the exporter to its clients, 
including buyers' credits granted after issuance of th e policy.  Individual policies are issued to cover 
specific sales or irregular export sales when export is not the business's usual activity, for a credit term 
of one year.
102  In cases of non-fulfilment, the policy covers the amount determined in the 
negotiations. 
166. Furthermore, the INS offers two types of fr eight insurance (import-export and internal 
transport insurance), under which it guarantees the buye r or seller of the goods transported refund of 
their value if they are affected by any of the risks covered.103 
167. The body mainly responsible for promoting Co sta Rican exports is the PROCOMER.  The 
trade promotion services offered to the export sector by the PROCOMER principally consist of preparing individual business plans;  supporting the organization of trade missions for exporters;  
organizing trade missions for buyers;  and partic ipating in and undertaking trade promotion at 
                                                     
 
101 See:  http://www.alide.org.pe/download/Fomi n/Sem%202_ElSalvador/Doc_ElSalvador/08_Programas 
%20Financiamiento_BCIE.pdf#search=%22Programa%20de%20Apoyo%20a%20la%20Producci%C3%B3n%20Exportable%20de%20Centroa m%C3%A9rica%20PAPECA%22. 
102 See:   http://portal.ins-cr.com/E mpresas/SegurosCo/SegCredExpLocal/. 
103 See:   http://portal.ins-cr.com/Empre sas/SegurosCo/SegCarga/segcarga.htm. WT/TPR/S/180/Rev.1 Trade Policy Review 
Page 58 
 
 
international fairs.  The PROCOM ER's Export Information Centre ( Centro de Información al 
Exportador  – CIEX) provides exporters with trade information services.104 
168. The Central Bank of Costa Rica has rules on the financing of exports and pre-export costs105 
published in Official Journal No. 244 of 22 December  1981.  According to these rules, financing is 
authorized for Costa Rican exporters which need th e funds for the following purposes:  to finance the 
import of inputs to be incorporated into their production for export, as well as other export-related 
external costs.  According to Article 5, the amount financed, plus the financial costs of the financing, 
may not under any circumstances exceed 84 per cent of the value of the export. 
169. In addition, the ICAFE and the LAICA have their own independent activities to promote 
coffee and sugar respectively. 
(4) OTHER MEASURES AFFECTING PRODUCTION AND TRADE  
(i) Incorporation of companies and their tax regime 
170. The incorporation of companies is govern ed by Law No. 3284 (Commercial Code) of 
30 April 1964 (and amendments thereto).  This Law allows four types of commercial company to be 
set up:  general partnerships, lim ited partnerships, limited liab ility companies and public limited 
companies.  Other legal entities may be set up in accordance with special rules.106  T h e  M E I C  i s  
responsible for ensuring compliance with the provisions of Law No. 3284. 
171. A public limited company is the most popular form of commercial structure.  Two partners 
are required in order to set one up.  It is inco rporated through a document drawn up by a notary, 
public issue of shares or as a closely held corporation107, the latter being the most common form.  A 
public limited company is administered by an execu tive board or board of directors composed of a 
minimum of three members, who may or may not be partners, and are entitled the chairperson, 
secretary and treasurer. 
172. The articles of incorporation, the extension, modification and winding up of commercial 
companies, as well as documentation referring to mergers or transformation of a company, must be registered in the Register of Legal Persons.  The average time required for registration formalities is 
between 15 and 30 days.
108  Ten days after its registration, the company must be registered by the 
Directorate-General of Taxation as a taxpayer.  In add ition, it must be registered with the Costa Rican 
Social Security Fund ( Caja Costarricense de Seguro Social  – CCSS) and the INS and obtain a 
sanitary operating permit from the Ministry of Hea lth.  The latter three requirements are usually 
conditions for obtaining a municipal licence, which is required for all profit-making activities.  The 
municipal licence is subject to payment of a tax.109  In 2006, in one municipality a PROEMPRESA 
                                                      
104 See:  http://www.procomer.com/tramites /index.cfm?queHacer=loadPage&page=actualiz. 
105 See:  http://www.bccr.fi.cr/documentos/s ecretaria/archivos/NorFinancExportBCCR.pdf. 
106 Further details concerning the special provisions can be found in the Manual de Trámites – 
Personas Jurídicas , consulted at:  http://www.registronacional.g o.cr/htm/juridicas/ma nual.htm.  See also 
Manual de Inversionista – Instalación de Empresas en Costa Rica , consulted on line at http://www.tramites.  
go.cr/manual/;  and the Guía Práctica sobre los Trámites que debe Realizar el Usuario en los Servicios 
Registrales de Personas Jurídicas , consulted at:  http://www.registronacional.go.cr/htm/juridicas/plantillas/ 
manual%20para% 20el%20usuario% 202003%20personas.doc. 
107 In closely held corporations, all the shareholders  are identified and sign the articles of incorporation 
before the notary at the same time. 
108 See Manual de Inversionista – Registro Nacional , consulted at:  http://www.tramites.go.cr/manual/ 
espanol/frame.htm. 
109 Municipal Code (Law No. 7794), Official Journal of 18 May 1998. Costa Rica WT/TPR/S/180/Rev.1 
 Page 59 
 
 
pilot plan was launched combining business li cence formalities, sanitary operating permits, 
registration with the CCSS, tax regi stration and insurance cover (INS). 
173. Foreign companies may open branches, subsidia ries or agencies in Costa Rica; the latter act 
as distributors or representatives.  Foreign companie s wishing to open a branch in Costa Rica must 
establish and maintain in Costa Rica  a general agent for the branch's activities.  Branches must be 
registered in the Commercial Register and subm it a resolution by the shareholders' assembly, 
authenticated by the Costa Rican consul in the domicile of the foreign company.  There is no such 
formality if the foreign parent company sets up a pub lic limited company.  Branches are subject to the 
legislation of their country of domicile;  neverthel ess, Costa Rica's public order legislation applies and 
they must pay income tax, although only in respect of  the business carried out within Costa Rica.  The 
authorities have indicated that, in practice, fore ign companies setting up in Costa Rica usually 
establish a subsidiary rather than a branch. 
174. The principal taxes on companies in Costa Ri ca are shown in Table III.9.  Only the 
commercial revenue earned in Costa Rica is taxable.  There is no capital gains tax, but the profits 
earned from selling capital goods are taxed as commercial income. 
Table III.9 
Main taxes on companies  
Tax Statutory tax rate Taxable base Legal basis 
Profits tax 10%, 20%, or 30%, 
depending on gross 
income Net income Law No. 7092 of 21 April 1988 and amendments 
thereto 
Municipal business tax Determined by each 
municipality Sales Law No. 7794 of 18 May 1988 and amendments 
thereto and special laws on business licences in each municipality 
Property tax  0.25% Registered value of 
the property Law No. 7509 of 19 June 1995 and amendments 
thereto 
Property transfer tax 1.5% Selling price La w No. 6999 of 3 September 1985 and amendments 
thereto 
Social security 
contributions Up to 23% Gross salary  Organic Law on the CCSS (Law No. 17 of 
22 October 1943 and amendments thereto) 
Regulation No. 7082 on the CCSS Health Insurance, 
of 3 December 1996 
Regulation No. 6898 on the Invalidity, Retirement 
and Life Regime, of 7 February 1995 
Law No. 7983 (Workers' Protection Law) of 
16 February 2000  
Treatment of the disposable 
income of corporations 15% Dividends (5% in 
some cases);  profits distributed to 
shareholders by trading 
companies;  and all distribution of trust 
funds to beneficiaries Law No. 7092 of 21 April 1988 and amendments 
thereto 
Law on the Education and 
Culture Revenue Stampa C 750-9,000 (depending 
on net capital)  Laws No. 5923 of 18 August 1976 and No. 6879 of 
21 July 1983 
Tax on interest 8% or 15%, depending 
on whether the shares are listed on the 
stock exchange or not Interest income Law No. 7092 of 21 April 1988 and amendments 
thereto  
a This tax is paid by any trading company and any subsidiary of a foreign company registered in the business section of the Pub lic 
Property Register. 
Source : WTO Secretariat and World Bank group, Payi ng taxes in Costa Rica, consulted at: 
http://www.doingbusiness.org/ ExploreTopics/PayingTaxes/ Details.aspx?economyid=50. WT/TPR/S/180/Rev.1 Trade Policy Review 
Page 60 
 
 
(ii) Price controls and competition policy 
(a) Price control provisions 
175. In accordance with Article 5 of the Law on the Promotion of Competition and Effective 
Consumer Protection (Law No. 7472 of 20 D ecember 1994 and amendments thereto), the 
Government may only control the prices of goods a nd services in exceptional situations and for a 
limited time.  Neverthel ess, Law No. 7472 does not apply to agents supplying public services under a 
concession;  or to State monopolies established by la w (see also section (4)(ii)).  Regulation may take 
the form of fixing prices, determining marketin g margins or any other form of control.  The 
imposition of price controls must be preceded by a technical study to confirm the existence of special 
circumstances. 
176. At the end of 2006, rice was the only product subject to official price control by the MEIC for 
producers and consumers (quality 80/20).  Law No. 7472 also fixes a minimum exit price for banana exports (see also section (3)(ii)). 
177. Prices for public services deemed essential ar e regulated by the Regulatory Authority for 
Public Services ( Autoridad Reguladora de Servicios Públicos  – ARESEP).  The ARESEP determines 
prices and rates for public services  such as the supply of electricity;  certain telecommunications 
services;  sewage and drinking water services;  social postal services;  environmental services;  the supply of hydrocarbons-based fuel;  some irriga tion and drainage services;  public passenger 
transport, except for air services;  the national hi ghway network service and the toll system;  maritime 
and air services in national ports;  rail freight trans port;  and the collection and treatment of solid and 
industrial wastes (see also Chapter IV(5)).
110  In addition to prices, the margins for transporting and 
marketing fuel are also fixed.111 
(b) Competition policy 
178. The framework for Costa Rica's competition policy is the Constitution, the Law on the 
Promotion of Competition and Effective Consumer  Protection (Law No. 7472 of 20 December 1994) 
and amendments thereto, together with its  implementing regulations (Decree No. 25234 of 
25 January 1996) and amendments thereto.112  Article 46 of the Constitution prohibits special 
monopolies, as well as any act, even if it has its origin in a law, that threatens or restricts freedom of 
trade, agriculture or industry.  Furthermore, the Constitution declares any action by the State intended 
to prevent monopolistic practices or tendencies to be  of public interest and provides that enterprises 
set up as de facto monopolies must be subject to special legislation. 
179. In addition to consumer protection, Law No . 7472 contains provisions on monopolies and 
practices or conduct deemed to be monopolistic, economic deregulation, price controls, unfair 
competition (see section (2)(ii)) and the supply of ag ricultural products (see Chapter IV(2)).  The Law 
establishes a general ban on monopolies (State or private) and monopolistic practices that restrict 
competition.  Law No. 7472 applies to all economic ag ents active in Costa Rica in any sector, with the 
exception of those providing public services under a concession;  and State monopolies created by 
                                                      
110 Law No. 7593 of 9 August 1996. 
111 The final consumer prices fo r hydrocarbons fixed in December 2006 (including taxes) were:  
premium petrol C 488/litre, regular pe trol C 460/litre, and diesel fuel C 364/litre;  liquefied petroleum gas 
C 201.8/litre (price for distributors with no fixed point of sale to the final consumer).  Resolution RRG No. 6244-2006. 
112 According to these rules, the General Public Administration Law (Law No. 6227 of 3 May 1978) 
and the Law Regulating Administrative Litigation (L aw No. 3667 of 12 March 1966) also apply. Costa Rica WT/TPR/S/180/Rev.1 
 Page 61 
 
 
law, where these have been put in place by special legislation to carry out the activities specifically 
authorized therein in areas such  as insurance, distillation of alcohol and distribution of fuel. 
180. Law No. 7472 classifies monopolistic practices into  absolute and relative practices.  It 
considers automatically null and void  all absolute monopolistic practices.113  It also contains 
provisions on mergers, takeovers or any other act under which there is a concentration of economic 
agents with the effect of limiting competition.  Mergers are only controlled a posteriori and are 
examined according to the same sch eme as relative monopolistic practices. 
181. Since the last review, the only changes to the provisions in Law No. 7472 relating to 
competition concern certain functions of the Commission to Promote Competition ( Comisión para 
Promover la Competencia  - COPROCOM).  This is composed of five standing members and 
five alternates, appointed with the agreement of th e Executive upon the proposal of the Minister of the 
Economy, Industry and Trade.  It is empowered to d eal with and investigate, either automatically or 
following a complaint, practices which constitute im pediments or obstacles to free competition and 
unnecessarily interfere with the fluidity of the market. 
182. The COPROCOM's functions relating to the regulation of economic activities that do not 
unnecessarily interfere with transactions have been  transferred to the Regulatory Development 
Commission established by Law No. 8343 of 27 December 2002 (see below).  This Commission, 
which replaces the previous National Deregulati on Commission, is responsible for overseeing the 
formalities and requirements regulating trade and mo nitoring compliance with the Law on protecting 
citizens from excessive administrative requi rements and formalities (Law No. 8220 of 
19 February 2002).  The purpose of this Law is to prevent duplication of formalities for citizens and, 
inter alia , it reinforces the principle of publicizing all the necessary formalities, orders that formalities 
should be managed in such a way that it is only necessary to go to one office, and establishes the 
principle of positive silence (under which an au thorization procedure, approval or permit is 
automatically granted when all the requirements ha ve been met and no objection has been raised 
within the time-limits laid down in the law).  Th e Commission is composed of 15 regular members, 
including the President of the COPROCOM.  Neve rtheless, the COPROCOM is still entitled to give 
its opinion on the question and on any other matter affecting free competition in Costa Rica. 
183. The penalties relating to promotion of compe tition are prescribed in Law No. 7472;  the 
maximum fine depending on the offence is fixed in te rms of minimum wages or as a percentage of the 
annual sales by the offender during the preceding fiscal year or of the value of the offender's assets.  
Between 2001 and Octobe r 2006, the COPROCOM dealt with 446 cases relating to competition, 
following investigations ex officio or complain ts by economic agents, compared with 300 cases 
between 1995 and 2000.  No penalties were imposed in 2006, but a number of cases are still pending 
(Table III.10). 
Table III.10 
Penalties relating to competition, 2001-2005 
 2001 2002 2003 2004 2005
Economic agents penalized 31 63 10 2 1
Amount of the fines (in C) 6,692,260 151,233,523 122,587,048 72,758,120  205,911,840
Source : Information from the COPROCOM and the UTA, provisional figures.  
184. The authorities have indicated that, during the period 2001-2006, the COPROCOM issued 
many opinions and recommendations on how to promote or focus existing regulations in sectors such 
                                                      
113 In other words, practices which involve agreem ents between competing economic agents and which 
give rise to horizontal restrictions on competition. WT/TPR/S/180/Rev.1 Trade Policy Review 
Page 62 
 
 
as insurance, telecommunications, and establishment of corporations in the agricultural sector;  it 
carried out investigations to ascertain possible ha rmful monopolistic practices and analyse the market 
structure and the level of concentration in markets such as issuance of credit cards;  customs;  steel 
bars for construction;  cement;  broadcasting;  bookshops;  panel-beati ng and paint workshops;  
plastics;  long-life or frozen bread;  textiles;  pape r;  pension fund administra tors;  and supermarkets. 
185. According to a study by the UNCTAD114, despite the progress made in promoting and 
implementing competition policy, it has been difficult to apply the Law, one of the reasons being that there is no satisfactory culture of competition in  some government institutions and among economic 
operators;  the limitations of the regulations (for example, the absence of an obligation to notify 
proposals to merge companies and exclusion of some public services and State monopolies from 
application of the competition legislation);  as well as limitations relating to human resources and 
infrastructure. 
(iii) Incentives 
186. Costa Rica grants incentives in favour of nume rous economic sectors, usually through tax 
incentives or financing programmes.  In 2005,  over 200 laws gave tax exemptions.
115  At the end of 
2006, the Ministry of Finance was working on a dr aft law on transparency and rationalization of the 
exemption regimes with the intention of re ducing the number of exemptions allowed. 
(a) Tax incentives 
187. A large number of laws allow tax exemptions .  The Judiciary has estimated that these 
exemptions foster greater socio-economic equality.116  Customs duty exemptions alone accounted for 
C 38,800 million in 2001, C 23,800 million in 2002, C 25,300 million in 2003 and C 25,100 million in 
2004 (US$118.0, US$66.1, US$63.6 and US$52.6 million respectively)117;  these amounts correspond 
to exemption percentages118 of 15.6, 6.5, 7.4 and 6.5 per cent respectively (compared with 33.43 per 
cent in 1997).  Between 2000 and 2004, two regimes (t hose relating to agricultural inputs and medical 
inputs) on average accounted for 45.6 per cent of total tax exemptions given.119  With regard to profits 
tax, in 2005 the Government relinquished C 95,500 million in taxes (US$199.9 million) from free 
zones, cooperatives and mutual assistance orga nizations (C 80,800 million, C 5,900 million and 
C 8,800 million respectively).  There has been no study to quantify the overall economic impact of 
these exemptions, even though at the end of 2006 a study on the impact of free zones was being 
prepared. 
188. Tax exemptions are governed by the Law Regulating Tax Exemptions, Waivers and 
Exceptions (Law No. 7293 of 31 March 1992 and amendm ents thereto).  This Law refers specifically 
to the exemptions granted to domestic industry and for imports, listing th e benefits granted under 
various laws and for particular pr oducts (Table III.11).  Since the last  review, the only amendments to 
Law No. 7293 have been the inclusion in the list of exempt products of automobiles imported or 
bought in Costa Rica intended exclusively for the us e of disabled persons, and the elimination of the 
refund of the general sales tax paid on the purchase of essential inputs for building certain types of 
housing.  The authorities have indicated that several  exemptions are of no value in practice because 
the customs duty applied is 0 per cent. 
                                                      
114 United Nations Conference on Trade and Development (UNCTAD) (2005). 
115 Comptroller-General of the Republic (2005a). 
116 Idem  (2002). 
117 Idem (2005a). 
118 Share exempted for every colon collected. 
119 Share exempt for every colon collected. Costa Rica WT/TPR/S/180/Rev.1 
 Page 63 
 
 
Table III.11 
Some tax incentives included in Law No. 7293 
Product Benefit Operation benefiting 
Corrective eyewear or eyeglasses Exemption from ad valorem  and selective 
consumption taxes (pursuant to Law 
No. 7167 of 19/6/1990) Import 
Inputs, raw materials and basic final goods for agriculture, 
industry or national consumption, when it is satisfactorily 
proved that there are no regional supplies on comparable 
terms of quality, volume and price Import subject to import duty (excluding the 
1 per cent levied pursuant to Law No. 6946) 
of 1 to 5 per cent ad valorem , in accordance 
with Law No. 7017 of 16/12/1985 
(Convention on the Central American Tariff and Customs Regime) Import 
Public events (sports events, theatre and cinema, when the 
latter are showing films for children) 
Advertising services on radio st ations and rural newspapers 
Sale of articles contained in the basic food basket;  retreads 
and tyres exclusively for agricu ltural machinery;  veterinary 
products and the agricultural inputs defined by the MAG 
and the Ministry of Finance 
Medicines, kerosene, diesel fu el for fishing excluding sport 
fishing, books, musical compositions, paintings created in 
Costa Rica by Costa Rican or foreign painters, coffins, and monthly consumption of electricity for residential use of 
25 kW/h. or less 
Exports of goods whether or not subject to this tax and 
re-import of national goods within three years following 
their export Exemption from the General Sales Tax 
pursuant to Law No. 6826 of 8/11/1982 and 
amendments thereto (Law on the General Sales Tax) Import and local sales 
Musical instruments, their parts and accessories, except 
those produced in Costa Rica in comparable conditions Exemption from all tax, except for the sales 
tax (Law No. 7243 of 3/6/1991 and Law of 
4/7/2001) Import 
Goods acquired by associations for the normal conduct of 
their activities Exemption from payment of national and 
municipal taxes (Law on Community 
Development (DINADECO)) Import and local 
purchases by any group 
or public or private 
entity, whether national or international, wishing 
to engage in community 
development in Costa Rica 
Medicines These are not subject to any kind of tax or 
surcharge except for tariffs Import or local purchase 
Medical equipment, wheelchairs and like articles, special 
beds for hospitals, orthopaedic equipment, equipment for 
chemical, clinical and agricu ltural research laboratories, 
dentistry equipment, prostheses in general and any type of 
equipment used by persons with hearing disabilities, as well as in special education programmes for the disabled Exemption from any taxes or surcharges Import and local 
purchase 
Raw materials, inputs and any intermediate or final product 
used to prepare medicines Exemption from any tax or surcharge, except 
tariffs Import and local 
purchase 
Machinery, equipment, inputs for agricultural use, goods required for fishing activities (excluding sport fishing) 
 Exemption from any tax or surcharge 
provided that there is no production on 
comparable terms of volume, price, quality and availability in the countries having 
signed the Convention on the Central 
American Tariff and Customs Regime Import 
Raw materials for preparing inputs for agricultural use and 
for packing bananas.  This benefit extends to fuel in the 
case of the aforementioned fishing activities 
 Exemption from any tax or surcharge except 
for tariffs, provided that there is no 
production on comparable terms of volume, 
price, quality and availability in the countries having signed the Convention on the Central 
American Tariff and Customs Regime Import 
Machinery and equipment  Exemption from any tax or surcharge Import by the IDA for 
the Coto Sur 
Agro-industrial Project 
Table III.11 (cont'd) WT/TPR/S/180/Rev.1 Trade Policy Review 
Page 64 
 
 
Product Benefit Operation benefiting 
Buses or chassis with or without their motors, needed for 
the public transport of passengers Not subject to any type of tax or surcharge, 
except tariffs, at a rate of 5 per cent Import 
Minibuses with a minimum capacity of 26 passengers, 
required by concessionaires and holders of permits for 
remunerated public transport of persons Exemption from any type of tax or surcharge, 
except for tariffs.  If the ad valorem  tariff 
exceeds 5 per cent, the ta x applicable to the 
amount exceeding 5 per cent is exempt Import 
Automatic data-processing machines and their units, 
included in tariff heading 84530000, spare parts and 
accessories for the aforementioned goods under tariff 
heading 84550200, carrier media for computer programs, 
whether or not printed, under heading 92120500, ink ribbons for the aforementioned machines under heading 
98080100 and "uninterruptible power supplies" (UPS) 
under heading 90288001 Not subject to any type of tax or surcharge, 
except for tariffs and sales tax Import and local 
purchase 
Foreign goods entering the Golfito free trade warehouse Exemption from all taxes 
(Law on the Creation of the Golfito Free 
Trade Warehouse, No. 7012, 4/11/1985 and 
amendments thereto) Import 
The following articles, which ha ve a preferential tariff of 
3 per cent:  perfumery, toilet and cosmetic articles (Nauca:  
33.06b.  Other), washing machines and dryers (Nauca:  
84.40), sewing machines for domestic use (Nauca:  84.41), electric irons and microwave ovens (Naucas:  85.12 to 85.12c) Not subject to the single 18 per cent tax on 
the sale of goods stored in the Golfito free 
trade warehouse (Law on the Creation of the 
Golfito Free Trade Warehouse, No. 7012, 4/11/1985 and amendments thereto) Import 
Source : WTO Secretariat, on the basis of Law No. 7293 of 31 Ma rch 1992 (Law Regulating Tax Exemptions, Waivers and 
Exceptions). 
189. Table III.12 gives details concerning the tax in centives to promote production and investment 
in addition to those granted under Law No. 7293.  Tax incentives are also given under export 
incentive schemes such as the Free Zone Regime, the Inward Proce ssing Regime and the Duty Refund 
Regime (see section (3)(iv)). 
190. Between 2001 and 2006, each year the MEIC proces sed more than 24,000 applications for tax 
exemptions.  According to the authorities, the goods th at receive the most exemptions are those in the 
agricultural sector, medicines and inputs for their manufacture, together with medical equipment. 
Another sector that has benefited was the t ourism sector, even though from 2001 onwards the 
exemption from the sales tax was abolished by Law No. 8114. 
Table III.12 
Other tax incentives 
Beneficiaries:  Rural electrification cooperatives 
Benefits:  Exemption from all kinds of tax on the purchase of the goods  and services needed to pursue their normal objectives 
Legal framework:  Law No. 6995 of 22 July 1985 
Beneficiaries:  The State, municipalities, autonomous public bodies, ente rprises under the Free Zone Regime and cooperatives, as well 
as civil associations grouping small or medium agricultural pr oducers of goods and services.  Public enterprises, however, incl uding 
State-owned banks, the INS and the Costa Rican Electricity Institute must pay this tax. 
Benefits:  Exemption from income tax 
Legal framework:  Income Tax Law (Law No. 7092 of 21 April 1998 and amendments thereto)  
Beneficiaries:  Companies engaged in tourism activities 
Benefits:  Vary depending on the activity:  accommodati on, air transport, water transport, in coming travel agencies and car rental 
firms.  Includes exemption from  all taxes and charges applicable to the impor t or purchase in Costa Rica (with the exception of  the 
sales tax) of articles essential for the ope ration and establishment of hotel services ;  spare parts for the operation of ships ;  articles for 
construction, extension or modification of qu ays or other ports for tourists.  Exempti on from taxes and charges, with the excep tion of 
customs duty, for the import of public transport vehicles with a minimum capacity of 15 passengers and the import or purchase o f 
vessels in Costa Rica.  Supply of fuel at competitive prices for the air transport of passengers.  Exemption of 50 per cent on the total 
amount obtained by applying the taxes in force on the import of motor vehicles solely intended for rental to tourists. 
Legal framework:  Law No. 6990 of 15 July 1985 (Law on Incentives for Tourism Development), Decree No. 24836 of 
5 December 1995, and Decree No. 25148 of 20 March 1996 (regula ting car rental for Costa Rican and foreign tourists)  
Table III.12 (cont'd) 
 Costa Rica WT/TPR/S/180/Rev.1 
 Page 65 
 
 
Beneficiaries:  Owners of natural woodland and pe rsons engaged in reforestation 
Benefits:  Exemption from payment of the property tax (establis hed by Law No. 7509);  and the tax on uncultivated land 
Legal framework:  Law No. 7575 of 13 February 1996, Law No. 7509 of 9 May 1995, and Law No. 7543 of 19 September 1995  
Beneficiaries:  Companies awarded contracts for hydr ocarbons exploration and exploitation 
Benefits:  Exemption from payment of all general or local taxes and surcharges on the import of  equipment, machinery, field vehicles, 
instruments, spare parts, materials and other goods and services needed for the proper fulfilment of the contracts.  The exempt ion 
covers the exploration period and the firs t 10 years during which the hydrocarbons are exploited, provided that the goods impor ted 
cannot be obtained in Costa Rica on comparable terms of quality , volume and price;  goods purchased in Costa Rica are allowed t he 
same exemption. Legal framework:  Law No. 7399 of 3 May 1994 and Decree No. 25785 of 22 Ja nuary 1997 (Regulations on Bidding Procedures for 
the Award of Contracts for Hydro carbons Exploration and Exploitation)  
Beneficiaries:  Industries producing and assembling equipment, machiner y and vehicles;  private companies with high energy 
consumption 
Benefits:  Exemption from the selective consumption, ad valorem  and 1 per cent taxes on the custom s value of merchandise imported 
for various domestic and imported goods used to  manufacture equipment and generate ener gy in accordance with energy efficiency 
standards.  
Legal framework:  Law No. 7447 of 3 November 1994 (Law Re gulating the Rational Use of Energy)  
Beneficiaries:  Literary, educational, scientific, tec hnological, artistic, sports and cultural productions (whether national or imported) 
declared to be of public interest 
Benefits:  Exemption from sales tax, the selective consumption tax and other taxes such as taxes, surcharges, consular fees and 
customs duties.  Exemption is also given for raw materi als, machinery and equipment for printing and publishing. 
Legal framework:  Law No. 7874 of 23 April 1999  
Beneficiaries:  Cooperative associations 
Benefits:  The possibility of obtaining polic ies issued by the INS at cost price;  and th e right to electricity at preferential rates. 
Legal framework: Law No. 4179 of 29 August 1968  
Beneficiaries:  Buyers of new vehicles for the remune rated transport of persons by taxi 
Benefits:  Exemption of 60 per cent on all taxes of any kind paid in order to import or upon import. 
Legal framework: Law No. 7969 of 22 December 1999  
Source : WTO Secretariat. 
(b) Financing programmes and other incentives 
191. A number of institutions in Costa Rica have financing programmes, for example, banks, 
cooperatives, finance companies and non-government al organizations (NGOs), some of which are 
termed micro-, small or medium-sized enterprises (SMEs) (Table III.13).  SMEs can obtain financing 
from institutions such as the National Bank, the Banco Popular y de Desarrollo Comunal , the Banco 
Cuscatlan  and the Women’s Foundation ( Fundación Mujer ).120  These programmes are of particular 
importance inasmuch as such enterprises account for 98 per cent of Costa Rica's production sector.121 
Table III.13 
Principal financial incentives applicab le to production and investment 
National Programme to Support Micro-Enterprises ( Programa Nacional de Apoyo a la Microempresa  – PRONAMYPE) 
Coverage:  Trade, industry, services, agriculture (excluding coffee and pa lm hearts), poultry breeding, livestock breeding, aquaculture, 
pig breeding, and flower growing Beneficiaries:  Micro-enterprises and micro-entrepreneurs 
Amount financed:  Up to US$5,000 
Terms and benefits:  Loan for a maximum of 48 months;  annual interest ra te of 22.50 per cent on balances, revised and adjusted 
quarterly according to the trend in the Ce ntral Bank's basic borrowing rate.  Requirements include: being a Costa Rican citizen  by birth or 
naturalization, with few resources or vulnerable;  being a micr o-entrepreneur or having a project for the establishment of a 
micro-enterprise;  and the micro-enterprise must employ a maximum of five workers, including the entrepreneur. 
Implementing agency and pertinent authority:  Ministry of Labour and Social Security  
Amounts disbursed:  At November 2006, 449 loans had been granted for an amount of C 548,147,957.  The average amount per loan 
was C 1,220,819.5. 
Table III.13 (cont'd) 
 
 
                                                      
120 Further details on the MEIC's programmes can be found in Proveedores Financieros , consulted at:  
http://www.siec.go.cr/svs/proveedor es_financieros/ default.aspx. 
121 National Bank, Banca de Desarrollo , consulted at:  http://www.bncr.fi.cr/BN/info. asp?c=bcades. WT/TPR/S/180/Rev.1 Trade Policy Review 
Page 66 
 
 
Programme to Support Small and Medium-Sized Enterprises ( Programa de Apoyo a la Pequeña y Mediana Empresa  - 
PROPYME) 
 
Coverage:  Technological innovation and research projects 
Beneficiaries:  Small and medium-sized enterprises or groups 
Amount financed:  Up to 80 per cent of the total co st of the project.  The annual e nvelope available is C 200 million. 
Terms and benefits:  SMEs, competitive non-repayable funds for up to 80  per cent of the total cost of the project 
Implementing agency and pertinent authority:  Ministry of Science and Technology 
Amounts disbursed:  Between 2003 and 2006, C 356. 0 million was approved.  
Comment:  The PROPYME is intended to promote and build management  capacity and competitiveness of Costa Rica's small and 
medium-sized enterprises through technological development.  
Development Fund for Micro-, Small- and Medium-Sized Enterprises ( Fondo de Desarrollo de la Micro, Pequeña y Mediana 
Empresa  – FODEMIPYME) 
Coverage:  Projects or programmes for:  training or technical assistance, technological development;  transfer of technology;  know-how, 
research, development of human potential;  and innovation and technological  change processes. 
Beneficiaries:  Micro-, small and medium-sized enterprises 
Amount financed:  Up to 50 per cent of the amount of  the loan and up to C 42 million 
Terms and benefits:  Term of up to 120 days;  the interest rate applicable to lo ans combines the basic rate with a risk margin depending 
on the client;  the basic rate is 12.25 per cent. 
Implementing agency and pertinent authority:  Banco Popular y de Desarrollo Comunal  
Amounts disbursed:  Between April 2004 and October 2006, the amount guaranteed  was C 1,549 million (Secur ity and Guarantee Fund) 
and the amount of the loans granted was C 1,299 million (Financing Fund). 
Comment :  It is composed of three funds:  the Security and Guarante e Fund, the Financing Fund and the Transfer Fund.  The main 
objective is to grant security or guarantees to micro-, small- and medium-sized enterprises " on terms and in proportions partic ularly 
favourable to the satisfactory development of their activities", and to grant loans to finance proj ects and programmes which, inter alia , 
require the development or transfer of technology, technical trai ning, technical innovation or a ch ange in technology.  It prov ides funds 
from the Banco Popular y de Desarrollo Comunal . 
Source : WTO Secretariat. 
192. The tourism sector is given non-tax incentives which include access to promotion and 
technical advice programmes and the promotion pr ogrammes of the Costa Ri can Tourism Institute 
(Instituto Costarricense de Turismo  – ICT).122  Assistance is given for r eadjustment of the agricultural 
sector under a number of laws (see Chapter IV(2)). 
(iv) State-trading enterprises, State-owned enterprises and privatization 
193. Costa Rica has notified that the only company coming under the provisions of Article XVII of 
the GATT 1994 is the RECOPE.  This State-owned ente rprise is the sole and exclusive administrator 
of the State monopoly of import, refining and whol esale distribution of crude oil, petroleum-based 
fuels, asphalt and naphtha.123  In 2006, total imports of products s ubject to exclusive rights (12 tariff 
lines in Chapters 27 and 29 of the Harmonized Syst em) amounted to some US$1,240 million.  For the 
purposes of this review, the authorities have indicat ed that RECOPE's exclusive rights are granted in 
order to ensure the strategic supply of the market.  
194. During the period under review, there were no changes to the regulations on State monopolies 
and privatization, even though at the end of 2006 a nu mber of draft laws were  under consideration for 
the gradual liberalization of the telecommunications  and insurance sectors following the conclusion of 
the Central America-Dominican Republic-United States Free Trade Agreement124 (see also 
Chapters II(5) and IV(5)).  
                                                      
122 Decree No. 25226 of 15 March 1996 (Regulation of Tourism Enterprises and Activities). 
123 WTO documents G/STR/N/5/CRI-G/STR/N/6/CRI -G/STR/N/7/CRI of 23 January 2002, and 
G/STR/N/8/CRI of 5 November 2003. 
124 Article 12.4 (Market Access for Financial Institutions), Section H (Specific Commitments of 
Costa Rica on Insurance Services) and Annex 13 (Specifi c Commitments of Costa Rica on Telecommunications 
Services). Costa Rica WT/TPR/S/180/Rev.1 
 Page 67 
 
 
(v) Government procurement 
195. According to preliminary information from the Comptroller-General of the Republic, for the 
government sector as a whole (central government , municipalities, autonomous institutions and 
State-owned enterprises), in 2005 the total va lue of procurement of goods and services was 
C 1,746,629.9 million (some US$3,655.6 million), corr esponding to 18.3 per cent of the GDP for that 
year.125  The total amount of direct procurement by the government sector as a whole was 
C 38,580 million (5.4 per cent of the total value).126 
196. The total value of procurement of goods and services by the central government (only 
including ministries) was C 43,618 million (some US$91.3 million)127;  the procedure most frequently 
used is direct procurement, which concerns 91.4 per cent of contracts, followed by bidding through 
registration (3.6 per cent), selective bidding (3.3 per cent), open bidding (1.7 per cent) and international bidding (0.07 per cent).
128 
197. Costa Rica has not signed the WTO Plurilatera l Agreement on Government Procurement and 
is not an observer.  On the other hand, it tak es part in the work of the WTO Working Group on 
Transparency in Government Procurement.  
198. Since the previous review, measures have been ta ken to foster transparency in the government 
procurement system by adopting an on-line system called "Compra RED", which aims to computerize the process of disseminating information on tenders.
129 
199. The legal framework regulating government procur ement of goods and services is to be found 
in the Administrative Procurement Law (Law No. 7494 of 8 June 1995 and am endments thereto) and 
its implementing regulations (Decree No. 25038 of 28 March 1996 and amendments thereto);  the 
General Law on Public Utility Works Contracts (Law No. 7762 of 14 April 1998) and its implementing regulations (Decree No. 27098 of 12 June 1998);  the Industrial Production Incentives 
Law (Law No. 7017 of 16 December 1985) and its implementing regulations (Decree No. 32448 of 
28 April 2005), and the Regulations on Use of the Register of Suppliers (Decree No. 25113 of 20 April 1996).  Law No. 8511 should enter into force on 4 January 2007 introducing significant 
amendments to the various provisions of Law No. 7494.  
200. In 2002, pursuant to Law No. 8262 of 2 May 2002, implemented by Decree No. 33111 of 
6 April 2006, the government authorities were requi red to establish a special programme to ensure 
some measure of participation by SMEs in govern ment procurement.  This programme was regulated 
in 2006 by Decree No. 33305
130, which lays down the guidelines a nd establishes the mechanisms to 
ensure participation by SMEs in the pr ocurement of goods and services by the State.  
201. Law No. 7494 does not apply to, inter alia , agreements with other States or with entities 
subject to public international law, contracts betw een public law bodies, or activities authorized by the 
Comptroller-General of the Republic by means of a resolution where there are reasons of public 
                                                      
125 Comptroller-General of the Republic (2005b). 
126 Ibid (2005b). 
127 Ministry of Finance, Technical Secretariat of  the Budgetary Authority, Analysis and Fiscal 
Monitoring Unit (2005). 
128 Ministry of Finance, Directorate-General of Asset Management and Administrative 
Procurement (2005). 
129 Decree No. 32717 of 16 September 2005 (Regulation of the Use of the Compra RED Government 
Procurement System). 
130 Decree No. 33305 of 13 June 2006. WT/TPR/S/180/Rev.1 Trade Policy Review 
Page 68 
 
 
interest (but this provision will be repealed unde r Law No. 8511), or to other activities which by law 
are subject to special government procurement regimes (see below).  
202. Law No. 7494 provides the following methods for government procurement of goods and 
services:  open bidding procedures;  bidding by registration;  selective bidding;  and direct 
procurement or contracting.  Furthermore, the au thorities may include prior qualification requirements 
in the procedures, as well as a Dutch auction procedure and bidding with financing.  
203. Law No. 7017 provides that the central government, autonomous and semi-autonomous 
entities, municipalities or any other official body must give priority to products manufactured by the domestic industry when procuring goods, provided that supplies are adequate and the quality and 
price comparable to those of the imported product.
131  The Law requires a comparison to be made 
between the price of the domestic product and that of the imported product including all customs and 
import costs.  As did the previous regulations , Decree No. 32448 of 28 April 2005 lays down the 
parameters to be applie d in making the comparison.132 
204. For open bidding procedures, all invitations to  tender must be published in the Official 
Journal.  Where it is considered appropriate for reasons  of public interest or it has been so agreed with 
the international public body financing the procur ement, the competent authority, in addition to 
making the usual publication, may invite foreign companies to participate by publishing a notice in foreign newspapers or by informing the trade delega tions accredited to Costa Rica.  In the case of 
bidding by registration, only registered suppliers are invited to submit bids.  
205. Direct contracting may be used in the followi ng cases:  regular activities;  agreements with 
other States or with public international law bodies;   activities between public law entities;  activities 
which because of their nature or the prevailing circumstances so require (for example, a single 
supplier, substantiated security reasons, utmost urgency);  where the business involves only minor 
amounts;  procurement using petty cash funds;  pr ocurement for the construction, establishment or 
supply of offices or services abroad;  or where there are sufficient reasons of public interest.  In the 
case of public interest, the relevant application must  be submitted to the Comptroller-General of the 
Republic, indicating the reason why direct contracting needs to be used, the estimated amount of the 
procurement and the relevant budget line.  The application must also indicate the way in which it is 
intended to select the contractor.  Where direct c ontracting needs to be used because of the amount 
involved, the authorities must send out invitations to no less than three potential suppliers and select 
the best bid.  
206. Pursuant to Law No. 7494, the participation of fo reign bidders is subject to reciprocity, under 
which they are given the same treat ment as Costa Rican enterprises rece ive in their country of origin.  
The authorities have indicated, however, that in practice this provision is not applied.  
207. For each contract, the public contracting procedur e is determined according to the authority's 
total budget and the estimated amount of the contract.
133 
                                                      
131 Decree No. 32448. 
132 For the purposes of comparing the prices of domestic and foreign manufactures, the authorities 
calculate the equivalent price using the following formula:  Peq = PCIF (1 + % of import costs + import tariffs, import taxes + Law No. 946 tax), in which Peq = equivalent price, i.e the price to be compared with that offered 
by national suppliers, and PCIF = the c.i.f. price of the goods.  In 2005, the percentage of import costs was 
8.25 per cent. 
133 In 2006, the limits in effect for determining the procedures were defined in Comptroller-General of 
the Republic, Límites de contratación administrativa , 2006.  Consulted at:  http://documentos.cgr.go.cr/ 
content/dav/jaguar/documentos/contratacion/docs/limites_contratacion_2006.htm. Costa Rica WT/TPR/S/180/Rev.1 
 Page 69 
 
 
208. As regards the criteria used to evaluate a nd compare bids, the invitation to tender must 
indicate the factors to be taken into consideration,  the degree and importance of each of them in the 
overall comparison of bids, and the method used to evaluate and compare bids in relation to each 
factor.134  In the case of services, in addition to pr ice, the selection criteria include the personal, 
professional or business situation of the bidders.  The authorities may at any time annul their 
contractual relations for various reasons, but must comply with a predetermined procedure and pay for 
the work already undertaken as well as any damages incurred.  
209. Law No. 7494 allows interested parties to lodge administrative appeals and judicial 
proceedings against the award of contracts.  In  particular, the Law provides for procedures for 
objecting to the invitation to tender, annulment and appeals procedures.  Annulment or appeals 
procedures may be used depending on the amount of  the contract awarded and the budget of the 
contracting agency.  Judicial appeals may be ma de against decisions irrespective of the amount;  
nevertheless, the amount serves as a reference to de termine what procedure is to be followed at the 
administrative level.  No further appeal may be lodged against a ruling by the Higher Administrative Tribunal.  The authorities have stated that, acco rding to preliminary information, there were 
248 appeals and 453 objections to invitations to tender in 2006.  
210. Each procurement department keeps a regist er of suppliers interested in government 
procurement.
135  At least once a year, through the Official Journal, the authorities invite suppliers to 
register;  natural and legal persons  may, however, request registration at any time.  The regulations on 
use of the register of suppliers, to be found in Decree No. 25113 of 24 April 1996, lay down the 
general procedures to be followed by natural and legal persons in or der to become registered as 
suppliers.  
211. There are special procedures for public works contracts in Law No. 7762 of 14 April 1998 
(General Law on Public Utility Works Contracts)  and Decree No. 27098 of 12 June 1998 (General 
Regulations on Public Utility Works Contracts).  Contracts for hydrocarbons exploration and 
exploitation are among the activities subject to  special government procurement regimes.136 
212. Under its free trade agreements  with Chile, Mexico and the Dominican Republic, Costa Rica 
has agreed to give suppliers from these countries national treatment for the procurement of goods and 
services covered by the agreements.137  The Treaty with CARICOM also includes provisions on 
government procurement.138  There are no similar provisions in the plan for the Central American 
Common Market.  
                                                      
134 General Regulation on Administrative Contracting No. 25038-H (Article 45.1.10). 
135 The procurement departments are regulated by Decree No. 30640 of 27 June 2002 (Regulations on 
the Operation of Procurement Departments of Government Ministries). 
136 Law No. 7399 of 3 May 1994 (Hydrocarbons Law), Decree No. 24735 of 29 September 1995 
(Implementing Regulations for the Hydrocarbons Law), Decree No. 25785 of 22 January 1997 (Regulations on the Bidding Procedure for Hydrocarbons Exploration a nd Exploitation Contracts) and the General Regulations 
on Contracting by the Costa Rican Petroleum Refining Limited Company (RECOPE), adopted by RECOPE's 
Executive Board on 26 November 2002. 
137 Chapter XII of the Free Trad e Agreement between Mexico and Costa Rica (Law No. 7474 of 
20 December 1994);  Chapter XII of the Free Trade Agreement between Central America and the Dominican 
Republic (Law No. 7882 of 8 June 1999);  and Chap ter 16 of the Free Trade Agreement between Central 
America and Chile (Law No. 8055 of 4 January 2001). 
138 Chapter XV of the Fr ee Trade Agreement between Costa Ri ca and CARICOM (Law No. 8455 of 
19 September 2005). WT/TPR/S/180/Rev.1 Trade Policy Review 
Page 70 
 
 
(vi) Protection of intellectual property 
(a) Introduction 
213. Costa Rica protects intellectual property rights through a combination of international and 
national provisions.  Since the previous review of its trade policy, its domestic legislation has not 
changed, except for approval of Decree No. 30363 (R egulations on the Organization and Operation of 
the Administrative Register Tribunal), which partly implements Law No. 8039 (see below) and Decree No. 30151-J, which prescribes that the Govern ment as a whole shall work diligently towards 
preventing and combating illegal use of computer  programs.  As part of the agenda for 
implementation of the Central American-Dominic an Republic-United States Free Trade Agreement, 
in February 2006 draft legislation was put before the Legislative Assembly with a view to amending 
the patent, trademark and enforcement laws.  These drafts received affirmative endorsement by the 
Commission on Legal Affairs on 30 August 2006.  
214. The WTO Agreement on Trade-Related Aspects of International Property Rights (TRIPS), 
ratified by Law No. 7475 of 20 December 1994, has had force of law in Costa Rica since 1 January 1995.  In June 2001, Costa Rica's legisl ation was examined by WTO Members.  Costa Rica 
replied to the questions submitted and to the ch ecklist of issues on enforcement, as well as to 
questions from Canada, the European Uni on, Japan, Switzerland and the United States.
139  T h e  
questions referred to issues such as the criteria fo r protection of various types of intellectual property 
rights, exceptions to protection, application of  national treatment and the most-favoured-nation 
principle, compulsory licences, protection of new plant varieties and enforcement.  
215. Costa Rica replied to the checklist of  issues on enforcement from the WTO140 and notified 
that its contact point is the Directorate-General of  Foreign Trade at the Ministry of Foreign Trade.141 
216. Costa Rica is a member of the World Intellectual Property Organization (WIPO) and is party 
to many international agreements on the protecti on of intellectual propert y rights (Table III.14).  
Table III.14 
Intellectual property treaties  ratified by Costa Rica 
International treaty Law and date of ratification 
Convention Establishing the World Intellectual Property Organization (WIPO)  Law No. 6468 of 18 September 1980 
Copyright and related rights  
Rome Convention for the Protection of Performers, Producers of Phonograms and 
Broadcasting Organizations (Rome Convention, 1961) Law No. 4727 of 5 March 1971 
Universal Copyright Convention (Geneva Convention) and its two protocols Law No. 5682 of 5 May 1975 
Berne Convention for the Protection of Literary and Artistic Works Law No. 6083 of 29 August 1977 
Geneva Convention for the Protection of Pr oducers of Phonograms Against Unauthorized 
Duplication of their Phonograms (Geneva Convention, 1971) Law No. 6486 of 25 September 1980 
Convention Relating to the Distribution of  Programme-Carrying Signals Transmitted by 
Satellite (Brussels Convention, 1974) Law No. 7829 of 22 September 1998 
WIPO Performances and Phonograms Treaty (WPPT, 1996) Law No. 7967 of 22 December 1999 
WIPO Copyright Treaty (WCT, 1996) Law No. 7968 of 22 December 1999 
Trademarks and other distinctive signs  
Paris Convention for the Protection of Industrial Property Law No. 7484 of 28 March 1995 
Lisbon Agreement for the Protection of Appella tions of Origin and their International 
Registration Law No. 7634 of 3 October 1996 
 Table III.14 (cont'd)  
                                                      
139 WTO document IP/Q/CRI/1-IP/Q2/CRI/1-IP/Q3/CRI/1-IP/Q4/CRI/1 of 18 January 2002. 
140 WTO document IP/N/6/CRI/1 of 20 March 2001. 
141 WTO document IP/N/3/Rev.9 of 8 November 2005. Costa Rica WT/TPR/S/180/Rev.1 
 Page 71 
 
 
International treaty Law and date of ratification 
Protocol to the Central American Agreemen t for the Protection of Industrial Property 
(Marks, Trade Names and Advertising Slogans or Signs) Law No. 7982 of 14 January 2000 
Patents, industrial designs and utility models  
Paris Convention for the Protection of Industrial Property Law No. 7484 of 28 March 1995 
Patent Cooperation Treaty Law No. 7836 of 22 October 1998 
Source : WTO Secretariat.  
217. The Industrial Property Register and the Copyri ght and Related Rights Register, both part of 
the National Register of the Ministry of Justice and Pardons, administer the corresponding intellectual 
property rights.  In 2005, the structures of these two registers were merged and they were grouped 
together in a single department so as to make better use of institutional resources.142  Nevertheless, the 
two registers continue to exist independently.  A legal advice  department has also been set up.  It 
became necessary to strengthen the Copyright and Related Rights Register by creating the post of 
Director of the Copyright Register.  
218. The Ministry of Justice, the Public Prosecu tor's Office and the Ministry of Finance are 
responsible for enforcement of intellectual property rights;  the bodies enforcing these rights are the 
Register of Industrial Property, the Register of Copyright and Related Rights, the Inspectorate for 
Miscellaneous Offences and the Directorate-General of Customs.143 
219. There have been no amendments to patent  legislation since the previous review144 or to 
copyright and related rights legislation145 (see Table AIII.1).  The granting of a patent entails the 
obligation to work it in Costa Rica,  permanently and regularly, so that the market is adequately and 
reasonably supplied, within a period of three years as of the date on which the patent is granted or 
four years as of the date of the patent applicati on, whichever is the longer.  The law allows the 
granting of compulsory licences if the applicant has tried without success to obtain the consent of the 
patent holder on reasonable commercial terms, in th e case of dependent patents, so as to maintain 
competitiveness in the market, or for reasons of th e utmost urgency or public necessity (subject to 
compensation).  At the end of 2006, there had not been any applications for compulsory licences for 
patents.  
220. Layout-designs (topographies) of integrated circuits are protected under Law No. 7961 (see 
Table AIII.1).  Compulsory licences may be granted on the same terms as those relating to patents in 
accordance with Law No. 6867 (and am endments thereto).  At the end of 2006, no applications for 
compulsory licences relating to integr ated circuits had been submitted.  
221. Costa Rica's legislation on copyright, patents a nd layout-designs of integrated circuits entails 
the international exhaustion of rights, which allo ws parallel import of the protected goods, lawfully 
sold on foreign markets.  
222. The Law on Trademarks and Other Distinctive Signs also protects geographical indications, 
including wines and spirits, as well as homonymous  appellations of origin (see Table AIII.1).  
                                                      
142 National Register, Informe de labores 2005 , consulted at:  http://www.registronacional.go.cr/ 
memoriasrn2005-2006.pdf. 
143 WIPO, Costa Rica – Legislative Profile , consulted at:  http://www.wipo.int/about-ip/en/ipworldwide/ 
pdf/cr.pdf. 
144 The consolidated version of Law No. 6683 was notified to the WTO and is contained in 
WTO document IP/N/1/CRI/C/3 of 6 November 2002. 
145 Idem . WT/TPR/S/180/Rev.1 Trade Policy Review 
Page 72 
 
 
Registration of a trademark does not give the owner the right to prevent third parties from using it on 
lawfully labelled products introduced into Costa Rica or a foreign country.  
223. Costa Rica has notified the WTO of Law No. 806 3, Law on the Identification of Costa Rican 
Bananas on International Markets.146  This Law provides that, in order to benefit from incentives or 
exemptions, exporters of bananas produced in Costa Rica must place a stamp marked "Bananas of 
Costa Rica" on each hand of bananas and on boxes or packages of any weight.  
224. The Law on Biodiversity, Law No. 7788 of 27 Ma y 1998, lays down rules for access to 
genetic and biochemical components of biodiversity, while undisclosed  information relating to trade 
and industrial secrets is protected by Law No. 7975.  
225. Costa Rica is not a member of the Interna tional Union for the Protection of New Plant 
Varieties (UPOV).  It does not grant any protecti on to new plant varieties.  In June 1999, the 
Government submitted a draft law to the Legislative Assembly in order to provide such protection, 
but it was set aside in 2006.  In August 2006, however, a new draft law on the protection of new plant varieties was submitted as part of the agenda fo r implementation of the Central America-Dominican 
Republic-United States FTA, based on the prot ection system establis hed under the 1991 UPOV 
Convention.  At the end of 2006, this draft w as being discussed by the Legislative Assembly's 
Standing Commission on Agricultural Affairs and Natural Resources.  
226. As far as the enforcement of intellectual prope rty rights is concerned, Costa Rica has been 
applying Law No. 8039 of 12 October 2000 (Law on Intellectual Property Rights Enforcement 
Procedures) since 2001.  According to this Law,  its implementing regula tions should have been 
adopted within six months of its publication.  In 2001, draft regulations for Law No. 8039 were 
approved by the Office of the Attorney-General of the Republic, but at the end of 2006 they had not 
yet been issued.  The authorities have indicated, ho wever, that even though the regulations for Law 
No. 8039 are not in force, the Law applies directly.  
227. In 2001, the Government submitted to the Legislative Assembly a draft amending 
Law No. 8039 with the intention, inter alia , of increasing the penalties for infringement of intellectual 
property rights, revising copyright procedures to ma ke them public, and repealing Article 70 of the 
Law as regards the principle of prejudice.  At the end of 2006, this draft had not yet been approved by 
the Legislative Assembly.  
228. Law No. 8039 set up an Administrative Register Tribunal under the Ministry of Justice and 
Pardons to hear appeals against the acts and final d ecisions of all the registers forming part of the 
National Register (including the Industrial Propert y Register and the Copyright and Related Rights 
Register).  Regulations for the Administrative Re gister Tribunal were approved in 2002 and entered 
into force in May that year.  
229. Costa Rica's legislation does not provide for fines for infringement of intellectual property 
rights but permits civil proceedings.  Infringement is  also punished by a term of imprisonment of one 
to three years;  under criminal law, however, if the penalty does not exceed three years the judge is 
empowered to impose a suspended sentence.
147  In 2001, Costa Rica submitted a notification to the 
WTO estimating the length and cost of civil and criminal proceedings.148 
                                                      
146 WTO document IP/N/1/CRI/G/1 of 6 November 2002. 
147 Criminal Code of Costa Rica (Law No. 4573 ) of 4 March 1970 and amendments thereto. 
148 WTO document IP/N/6/CRI/1 of 20 March 2001.